U.S. Representatives Mike Flood, Wiley Nickel, as well as Senator Cynthia Lummis submitted similar resolutions to strip the SEC’s Accounting Bulletin of its force and effect.
Members of the United States Congress are seeking to remove the Staff Accounting Bulletin 121 (SAB 121) from the U.S. Securities and Exchange Commission (SEC). This bulletin limits banks wishing to hold their client’s cryptocurrency assets, requiring them to keep their investor’s assets on the balance sheet.
Representatives Mike Flood, Wiley Nickel, as well as Senator Cynthia Lummis, introduced a resolution under the Congressional Review Act to repeal the SEC’s SAB 121 on Feb. 1, 2023, which would formally disapprove of the accounting rule and conclude that it has no legal force.
In support of the statement from Lummis, Flood criticized the SEC for issuing SAB 121 without consulting with prudential regulators or going through the notice-and-comment process required for such cases. He emphasized that Congress should serve as a check in the face of overreach by a regulator.
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Source: https://cointelegraph.com/news/congress-challenges-sec-crypto-custody-rule-repeal