đ **Bitcoin Enthusiasts, Take Note!** đ
A group of Republican lawmakers, led by Rep. Patrick McHenry and Sen. Cynthia Lummis, is pushing back against the SEC's Staff Accounting Bulletin No. 121 (SAB 121). In a letter to SEC Chair Gary Gensler, they argue that the guidance was issued without proper consultation and could put crypto consumers at risk.
The rule requires digital asset custodians to recognize liabilities and hold corresponding offsets on their balance sheets, which deviates from traditional accounting practices. Lawmakers claim this could inaccurately reflect custodians' obligations and expose consumers to greater risks.
The letter also highlights that SAB 121 should have undergone a formal rulemaking process under the Administrative Procedure Act (APA). Instead, the SEC bypassed this by framing it as staff guidance.
Interestingly, BNY Mellon received an exemption from some of SAB 121's requirements, raising concerns about transparency and fairness in the crypto custody space. Lawmakers argue this cherry-picking undermines investor protections.
Stay tuned, Bitcoiners! The regulatory landscape is ever-evolving, and this could be a pivotal moment for crypto custody. đ
