CoinVoice has recently learned that according to Bitcoin.com, on Wednesday, Federal Reserve Chairman Jerome Powell testified before the U.S. House Financial Services Committee, and Congressman Josh Gottheimer asked him questions about the U.S. SEC's Staff Accounting Bulletin (SAB) 121. The bulletin requires banks to include custodial digital assets on their balance sheets, which greatly increases the cost of providing digital asset custody services.
Gottheimer cited Powell’s previous statement that custody assets are not on the balance sheet and have always been so. Powell generally affirmed this position but did not comment on SEC policy, saying that this is the purview of the SEC.
Critics argue that SAB 121 weakens banks' ability to provide secure digital asset custody, pushing these services to less regulated entities and increasing consumer risk. Lawmakers proposed overturning SAB 121, citing its negative impact. Although the U.S. Congress passed the first standalone crypto legislation to overturn SAB 121, President Biden vetoed the bill, emphasizing the need to establish a regulatory framework for digital assets. [Original link]
