In a concerted effort, members from both sides of the<\/span> United States Congress<\/span><\/a> have rallied against the Securities and Exchange Commission\u2019s (SEC) Staff Accounting Bulletin 121 (SAB 121). This rare bipartisan agreement focuses on the bulletin, which mandates banks to include customers\u2019 crypto assets on their balance sheets. Representatives, including Senators Cynthia Lummis and Kirsten Gillibrand, Patrick McHenry, French Hill, Ritchie Torres, Mike Flood, and Wiley Nickel, spearhead this initiative.<\/span><\/p>\n They argue that this requirement not only sets a distinct treatment for<\/span> crypto holdings <\/span><\/a>compared to other assets but also dampens the enthusiasm of regulated banks to serve as crypto custodians. Consequently, they have issued a memo to key financial authorities, urging a reevaluation and clarification of SAB 121\u2019s enforceability, especially in light of a recent Government Accountability Office (GAO) finding.<\/span><\/p>\n <\/p>\n The GAO\u2019s involvement stems from a letter by Senator Lummis to the U.S. Comptroller General in August 2022. The GAO\u2019s evaluation centered on whether <\/span>SAB 121 falls <\/span><\/a>under the category of a \u2018rule\u2019 defined by the Congressional Review Act. According to this act, any agency rule must undergo a review process involving reporting to the comptroller general and both chambers of Congress, coupled with a provision for Congress to disapprove the rule.<\/span><\/p>\n This scrutiny has led to concerns among Congress members. They fear enforcing SAB 121 without proper regulatory compliance could set a dangerous precedent. It might pave the way for regulatory agencies like the SEC to gain control over institutions beyond their authorized purview, bypassing established legislative processes such as the Administrative Procedure Act.<\/span><\/p>\n <\/p>\n The resistance to SAB 121 isn\u2019t confined to the halls of Congress. In June 2022, a group of five senators, recognizing the potential implications of this \u2018backdoor regulation,\u2019 expressed their concerns to SEC Chair Gary Gensler. Moreover, during <\/span>Gensler\u2019s appearance<\/span><\/a> before the House Financial Services Committee in September, Representative Mike Flood voiced his disapproval of the bulletin\u2019s approach.<\/span><\/p>\n <\/p>\n These legislative actions reflect a growing sentiment in the financial and crypto industries against regulations perceived as overreaching or lacking clarity. Hence, this challenge to SAB 121 underscores a pivotal moment in the ongoing dialogue between regulatory bodies and the burgeoning world of digital assets.<\/span><\/p>\n Read Also:<\/b> MAS Unveils New Initiatives Including Live Wholesale CBDC Trials In Singapore<\/span><\/a><\/p>\n \u00a0<\/p>\n <\/p>\n \u2713 Share:<\/p>\nCongress Concerned Over SEC\u2019s Crypto Regulation<\/strong><\/h2>\n
Industry Reacts to SEC\u2019s Crypto Policy<\/strong><\/h2>\n
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