• Dan Weisberger criticizes reps supporting the SEC on SAB 121.

  • The Coin Routes chair calls the SAB 121 regulation supporters backward and anti-crypto.

  • Waters believes scrapping SAB 121 will undermine the SEC’s abilities to protect crypto investors.

CoinRoutes Chair Dave Weisberger blasted those who claim the SEC’s actions are protecting crypto investors, calling the view “backward” and branding those who agree with it as “anti-investor.”

Weisberger voiced his criticism in a post on X in response to the U.S. Representative Maxine Waters, who opposed a Republican-led resolution to block the SEC’s Staff Accounting Bulletin (SAB) 121.

This point of view, that the SEC is doing “good work protecting” crypto investors is so backwards, all who agree with it should be branded as anti-investor. This BILL would allow REGULATED entities to custody assets that the SEC unlawfully (according to the GAO) blocked,… https://t.co/NCFNFh0kCF

— Dave Weisberger (@daveweisberger1) July 10, 2024

Waters argued that opposing the bill equates to stripping away protections for crypto investors. However, the CoinRoutes chair countered, asserting that the bill would allow regulated entities to custody assets unlawfully blocked by the SEC, bypassing the normal process required by the Administrative Procedure Act (APA).

Weisberger further accused Waters and her colleagues of exploiting a loophole by labeling their statements as “advice,” even though regulated firms know SEC enforcement attorneys will treat them as rules.

In a press statement, Waters opposed efforts to block SAB 121, claiming it would undermine the SEC’s ability to protect cryptocurrency investors. She characterized the resolution as part of a broader industry-led attack on the SEC, which she believes has made significant strides in protecting investors, maintaining fair markets, and facilitating capital formation.

SAB 121, introduced by the SEC in March 2022, requires digital asset custodians to report liabilities and “corresponding assets” on their balance sheets for all cryptos in custody. Although President Biden vetoed the bill this year, he stated it provides “appropriate guardrails” for consumer and investor protection, which are necessary to harness the potential benefits of crypto innovation.

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