Lawmakers are seeking to remove a controversial U.S. Securities and Exchange Commission accounting bulletin that suggests restrictions on companies that want to hold their customers’ crypto assets.
Sen. Cynthia Lummis (R-Wyo.), Rep. Wiley Nickell (N.C.), and Rep. Mike Flood (R-Nebraska) were introduced. matching resolution On Thursday, the House and Senate will formally disapprove the accounting rules, concluding that they have no legal effect.
SEC 2022 Staff Accounting Report No. 121The law, commonly known as SAB 121, states that companies that store customers’ virtual currencies should keep them on their balance sheets. This may require banks that wish to hold virtual currency to maintain large amounts of capital to cover the virtual currency. danger. The move was greeted with excitement from the digital asset sector.
When federal regulators issue guidance to their staff, it should be advice on how to understand and interpret existing policies. When agencies inappropriately use guidance to set new policy, they often draw the ire of Congress. And that’s what the Government Accountability Office found last year, saying the SEC should have communicated this policy to lawmakers when issuing new rules and taken other steps required of the agency.
Lawmakers issued a resolution under the Congressional Review Act to eliminate the SEC’s operations.
An SEC spokesperson did not immediately respond to a request for comment on the latest objections to the bulletin.
“Despite the impact accounting standards have on the treatment of financial institutions’ assets under custody, the SEC issued SAB 121 without consulting prudential regulators; issued,” said Congressman Flood. statement. “It is Congress’s role to act as a check when faced with regulatory overreach.”
“Parity is required by requiring custodians to maintain equivalent assets as liabilities on their balance sheets. That is, for every $100 of Bitcoin held, $100 of similar assets are held on the balance sheet. “We will have to hold it on top,” said Perianne Bowling, CEO of the Chamber of Commerce. statement. “This stringent requirement has proven to prevent institutions from offering digital asset custody options.”