House Slated To Vote Today On Controversial Crypto Bulletin SAB 121 Resolution
The U.S. House of Representatives is set to vote this afternoon on a resolution proposed by Representatives Wiley Nickel (D-NC) and Mike Flood (R-NE) that would see a formal disapproval of the United States Securities and Exchange Commissionâs (SEC) Staff Accounting Bulletin (SAB) 121.
Reps. Wiley Nickel And Mike Floodâs Resolution To Be Voted On Today
If the resolution passes, it would formally press the SEC to backtrack on its controversial accounting bulletin.
SAB 121 has garnered heat since it launched in April 2022 because it requires banks to list liabilities and corresponding digital assets on their balance sheets in what the federal regulator called an attempt to âsafeguardâ crypto assets.
Concerns have swirled over the ethicality of SAB 121, given that the SEC failed to submit a Congressional report detailing the purported accounting bulletin.
âIt is unfortunate that the SEC would attempt to circumvent the rulemaking process while falsely claiming that SAB 121 is simply non-binding staff-level guidance,â Flood said in testimony early this week. âSAB 121 sets a disturbing precedent and is not the appropriate vehicle to promulgate accounting guidance for digital asset custodians
Why The SECâs SAB 121 Is Getting Flack From Congress
During his congressional testimony this week, Flood further criticized the SEC failing to work with Federal banking agencies before ushering in the bulletin, noting that the regulator should have consulted âregistrants, accounting firms, standard setting bodies, trade groups, and other agencies.
âBanking institutions looking to get involved with digital assets have additionally criticized the policy for preventing them from serving as custodians for crypto products, including the recently SEC-approved spot Bitcoin ETFs.