According to Terrett, the bill proposes only $2.025 billion in total funding for the SEC over 20 fiscal years, down from the £3 million budget proposed by SEC Chairman Gary Gensler in May 2009.
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In addition, funding for the SEC's executive branch, which is characterized as "aggressive," has been cut by 16,800 million pounds.
While the House of Representatives is likely to pass the bill, the Senate's position remains uncertain. But the outlook remains optimistic because several Democrats in the Senate, including prominent figures such as Senator Schumer, have previously voted in favor of repealing SAB121, Terrett noted. In addition, a similar resolution in the previous session, H. J. Res. 109, received some Democratic support.
This bipartisan support increases the likelihood that the provisions blocking funding for SAB121 will remain in the final version of the bill.
According to Terrett, SEC Commissioner Mark Ujeda has publicly supported the repeal of SAB121 and criticized the way the SEC introduced it by bypassing proper rulemaking procedures and undermining checks and balances.
Accounting Bulletin No. 121 (SAB121), published in 2022/3, requires banks and financial institutions engaged in custodial activities to include disclosures in the notes to the financial statements.
The financial institution argued that the combination of the need to have a balance sheet and the need for capital and liquidity reserves made it prohibitively expensive to provide such services.
On May 5, the House and Senate approved a resolution to repeal the SEC's controversial H. J. Res. It passed 109 resolutions and the Senate gave final approval May 5-16.
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