[Fed Chairman reiterates: Custodial assets are not on the balance sheet] Golden Finance reported that on Wednesday, Federal Reserve Chairman Jerome Powell testified before the U.S. House of Representatives Financial Services Committee, and Congressman Josh Gottheimer asked him questions about the U.S. Securities and Exchange Commission'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: Custodial assets are not on the balance sheet, and have always been so. Powell generally confirmed this position, but did not comment on the SEC's policy, saying that this is the purview of the SEC. Critics believe that SAB 121 weakens banks' ability to provide safe digital asset custody, pushes these services to less regulated entities, and increases consumer risks. Lawmakers proposed to overturn SAB 121, citing its negative impact. Although the U.S. Congress passed the first stand-alone crypto legislation to overturn SAB 121, President Biden vetoed the bill, emphasizing the need to establish a regulatory framework for digital assets.