The US House of Representatives is set to vote today on the contentious Staff Accounting Bulletin (SAB) 121 issued by the Securities and Exchange Commission (SEC). The resolution proposed by Representatives Wiley Nickel and Mike Flood aims to address concerns surrounding digital asset custodianship impacted by SAB 121.

The proposed resolution criticizes the SEC's approach to SAB 121 implementation and calls for its retraction. Since SAB 121 took effect in April 2022, it has faced intense scrutiny, especially from banking institutions reluctant to serve as custodians for new crypto products due to its unique accounting requirements.

Representative Flood has expressed concerns about the SEC's handling of SAB 121 during recent congressional testimonies. Oppositions highlight the lack of coordination between the SEC, federal banking agencies, and other stakeholders in the financial sector.

SIFMA's president Kenneth E. Bentson Jr. condemned SAB 121 last February for its negative impact on banks' financial ratios. The ongoing criticism of the SEC, led by Chairman Gary Gensler, for its strict regulatory actions against the crypto industry, has further intensified discussions around the future implications of SAB 121.

Today's House vote on the resolution holds substantial importance and could potentially shift regulations surrounding digital asset management in the US. A similar resolution led by Senator Cynthia Lummis in the Senate is also being monitored closely by the crypto and financial communities for its potential impacts on the industry.