Republicans Demand Reversal of SEC's SAB 121 Rule

by Giorgi Kostiuk

2 years ago

Criticisms of SAB 121
Reaction and Support
Background of the Situation

More than 40 US Republicans have urged the Securities and Exchange Commission (SEC) to rescind the widely criticized SAB 121 rule.

Criticisms of SAB 121

SAB 121 was proposed without consulting regulators and deviates from established accounting standards. Republicans argue that the new rule undermines consumer protections and stifles financial innovation.

Reaction and Support

Republicans also mentioned that the SEC bypassed the notice and comment rulemaking process required by the Administrative Procedure Act. The letter states that the rule fails to reflect the legal and economic obligations of the custodian, increasing risks for consumers.

Background of the Situation

The SAB 121 repeal bill was vetoed by President Joe Biden in June, despite receiving bipartisan support. The House failed to overturn the veto, falling 60 votes short of moving the matter to the Senate.

The letter, signed by over 40 Republican members, was sent ahead of a Financial Services Committee hearing scheduled for September 24, where discussions regarding SAB 121 are expected to take place.

Rewards

More rewards

Discover enhanced rewards on our social media.

Other news

Kraken Stands Firm Against Extortion Threats

Kraken, the second-largest crypto exchange in the US, has publicly rejected extortion threats from a criminal group after unauthorized access to client support data, emphasizing that its systems were never breached and client funds are secure.

Satoshi Nakamura4 hours ago

XRP Price Predictions Linked to CLARITY Act Resolution

Market analyst Sam Daodu outlines three potential scenarios for XRP's price movement in April, contingent on the US CLARITY Act.

Jesper Sørensen6 hours ago

Analysts Raise Price Targets for SanDisk Following Nasdaq100 Announcement

Following SanDisk's announcement of joining the Nasdaq100, analysts have raised their price targets, with Jefferies setting a target of 1,000 and Citi's Asiya Merchant raising hers to 980, reflecting strong market confidence.

Filippo Romano6 hours ago

SanDisk's Market Position Strengthened by AI Demand and Supply Constraints

SanDisk Corp is the only pure-play NAND company with a 13% global market share, benefiting from AI-driven demand and supply constraints faced by competitors.