In an X, Congressman Mike Flood revealed a Joint Resolution to revoke the authority of the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121. This SAB was enacted in 2022 and impacted the digital asset industry. The SAB addressed the “accounting for obligations to safeguard crypto-assets an entity holds for platform users.”
The SAB effectively blocked banks from providing custody of digital assets. At the time, SEC Commissioner Hester Peirce described SAB 121 as “another manifestation of the Securities and Exchange Commission’s scattershot and inefficient approach to crypto.”
Introduced with bipartisan support, the resolution aims to repeal the “terrible bulletin” stating the days are numbered for the rules.
Chair @GaryGensler’s SAB 121 has virtually blocked banks from serving as custodians of digital assets. Today, @RepWileyNickel, @SenLummis, and I introduced resolutions to repeal @SECGov‘s terrible bulletin.
SAB 121’s days are numbered – it’s time for it to go! 📝🗑️ pic.twitter.com/jTQDdbMm3I
— Rep. Mike Flood (@USRepMikeFlood) February 1, 2024
Congressman Patrick Mchenry, Chairman of the House Financial Services Committee, said, “There is bipartisan agreement that SAB 121 undermines consumer protection and leaves customers’ digital assets vulnerable. I look forward to getting this measure across the finish line to overturn it.”
