Bipartisan members of Congress have called on the U.S. Securities and Exchange Commission (SEC) to revoke the controversial Staff Accounting Bulletin 121 (SAB 121).
Call to Repeal SAB 121
In a letter led by House Financial Services Committee Chair Patrick McHenry and Senator Cynthia Lummis, lawmakers argued that the bulletin weakens crypto custody rules, potentially harming consumer protection and stifling financial progress. The letter, dated September 23, 2024, addressed the urgency of overturning the “disastrous” SAB 121. Over 40 politicians urged SEC Chair Gary Gensler to annul the bill, arguing that it is “the only reasonable course of action and well within the SEC’s authority.”
Lawmakers' Arguments
Lawmakers argue that SAB 121 undermines crypto custody rules and stifles financial innovation. Some experts believe that potential cancellation of the bulletin will be a significantly positive development.
What is SAB 121?
Introduced in 2022 by the SEC, SAB 121 requires public financial institutions to record crypto assets held for clients as liabilities on their balance sheets. The rule faced the ire of many banks as...
Lawmakers insist on the need to review and overturn SAB 121 for the protection of consumers and support of financial innovation.
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