U.S. House Financial Services Committee Chairman Patrick McHenry, Senator Cynthia Lummis, and 40 other lawmakers wrote to SEC Chairman Gary Gensler on September 23, saying that SAB 121 subverts cryptocurrency custody rules, weakens consumer protection, and stifles financial innovation, and once again called for its repeal.
The 42 politicians also claimed that SAB 121 â a proposed rule that would require entities that report to the SEC and hold cryptocurrency to record those assets as liabilities on their balance sheets â was issued without consulting any âprudential regulatorsâ and that the accounting method âdeviates from established accounting principles.â It would fail to reflect the legal and economic obligations of custodians and put consumers at risk of losses.
Politicians have also slammed the SECâs Office of the Chief Accountant for working with certain institutions to circumvent balance sheet reporting requirements, potentially leading to inconsistencies across the board. (Cointelegraph) #BTC
