According to information shared by "Fox Business" reporter Eleanor Terrett, the U.S. House of Representatives Appropriations Committee has reduced the budget requested by the U.S. Securities and Exchange Commission (SEC) from $2.59 billion to $2 billion in the upcoming fiscal year 2025 budget bill. In addition, the House included several additional provisions in the budget proposal, including prohibiting the SEC from enforcing or enforcing controversial accounting guidance SAB 121.
NEW: Look what has found its way into a @HouseAppropsGOP budget bill that is set to be marked up at a hearing tomorrow at 8:30AM EST. One of the provisions, or “policy riders,” of the bill prohibits the @SECGov from using appropriated funds to implement SAB 121, as well as… pic.twitter.com/S6S7kIlToc
— Eleanor Terrett (@EleanorTerrett) June 4, 2024
According to previous reports by Zombit, the “Staff Accounting Bulletin No. 121 (SAB 121)” proposed by the SEC stipulates that financial institutions holding customers’ cryptocurrencies must record them as liabilities on their balance sheets . Critics of the guidance say it will make it very difficult for financial institutions such as banks to work with cryptocurrency companies.
Although the U.S. Congress had previously voted to repeal SAB 121, U.S. President Biden later used his veto to overturn the resolution made by Congress to "repeal SAB 121." Now, Congress is countering the Biden administration by including "prohibiting the SEC from implementing SAB121 accounting guidance" into the budget.
If the budget passes Congress, the SEC will have to comply with its provisions. Provisions in the budget bill would legally limit how the SEC can use its appropriations, including prohibiting the use of those funds to enforce certain policies or regulations, such as SAB 121.
This article Biden used his veto power to strongly defend the evil law "SAB 121", and Congress countered with "budget additional provisions" first appeared on Zombit.