🚨Republican lawmakers slammed the SEC for regulatory chaos and demanded the revocation of SAB 121!
Republican lawmakers recently expressed strong dissatisfaction with the US SEC's cryptocurrency regulatory approach, accusing the SEC of privately granting exemptions to specific banks and undermining industry transparency.
Against this backdrop, Representative Patrick McHenry and Senator Cynthia Lummis jointly initiated a call for the SEC to revoke its Staff Accounting Bulletin No. 121 (SAB 121).
In a letter to SEC Chairman Gary Gensler, lawmakers pointed out that the release of SAB 121 without following the formal rulemaking process has caused institutional confusion and increased consumer investment risks. The rule requires custodians to recognize liabilities, which is inconsistent with traditional accounting practices and may mislead consumers.
It is reported that Republican lawmakers in Congress are pressuring the SEC to revoke Staff Accounting Bulletin No. 121 (SAB 121), a measure they believe will help avoid regulatory confusion.
Lawmakers agreed that revoking SAB 121 is an appropriate move and is well within the SEC's authority. They also cited the decision of the U.S. Government Accountability Office (GAO), arguing that SAB 121 should be subject to stricter scrutiny.
At the same time, Republican lawmakers are also closely following the SEC's secret negotiations with certain financial institutions, accusing and criticizing the SEC for arbitrarily picking "winners" and "losers" in the field of cryptocurrency custody, while ignoring formal procedures.
Among them, Bank of New York Mellon is one of the beneficiaries. The bank was identified as the first bank to be exempted from the rule (SAB 121). Chris Land, an advisor to Senator Lummis, revealed that the SEC granted the bank an exemption to promote its continued participation in the cryptocurrency custody business.
Legislators believe that this behavior lacks transparency, cannot guarantee that SAB 121 is applied to different institutions in the same way, and undermines investor protection and interests.
💬 What do you think of the SEC's differentiated regulatory approach and the SAB 121 bill? Will the revocation of SAB 121 really improve cryptocurrency regulation and transparency?
In your opinion, what can regulators do to convince the public when dealing with the issue of cryptocurrency custody?
