Senator Cynthia Lummis and two other members of the US House of Representatives are fighting to eliminate the harsh SAB 121 accounting rule imposed by the SEC on banks and crypto custody companies.
SAB Rule 121 forces institutions that want to deposit Crypto to maintain a corresponding amount of capital to offset the risk of that coin's price decline. This means that for every $100 BTC HOLD, that organization must have $100 in assets on the balance sheet to balance risks.
Not all organizations have enough financial capacity to satisfy the above requirements, directly creating a major barrier for companies wanting to deposit Crypto in the US. Furthermore, the SEC has arbitrarily promulgated this rule since 2022 without going through Congress
The issue will be considered by the National Assembly and if the effort to reject it is successful, this is very positive information for the future
