ANOTHER AMERICAN REGULATORY DRAMA
Republican Wiley Nickel: "SEC has turned cryptocurrency regulation into a political soccer"
North Carolina Democratic U.S. Congressman Wiley Nickel accused the U.S. SEC of being biased against the cryptocurrency sector and unwilling to fulfill its mandate to protect investors.
In a letter sent to SEC Chairman Gary Gensler, Wiley Nickel said the regulator is contradicting its mission to protect investors. The agency is exceeding its authority by attempting to adopt Statement of Accounting Bulletin 121 (SAB 121), the letter said. Under SAB 121, financial institutions reporting to the SEC that hold cryptocurrencies must mark them as liabilities on the balance sheet.
Nickel believes the rule will prevent U.S. banks from holding large amounts of cryptocurrency-related products. This will create a "concentration risk" of funds with non-banks. Many U.S. investors will look for ways to store deposits offshore, which could prove much riskier, the congressman fears.
"The SEC's open hostility toward the crypto industry does not serve President Biden's interests. The SEC is turning cryptocurrency regulation into a political soccer and forcing Biden to decide which side to play on," Nickel wrote.
The politician urged Gensler to withdraw SAB 121, even as he was confident that the Senate would pass a resolution to reject SAB 121 on the May 16 vote on the issue. Last week, the U.S. House of Representatives voted to pass a bill to repeal the Bulletin.