Adding on to the outright criticism of the U.S. Securities and Exchange Commission’s (SEC) overreach around crypto asset regulation, top Republican lawmakers are demanding that an April 2022 rules issued by the SEC around crypto accounting be blocked.
US SEC’s SAB 121 To Be Blocked?
On April 11, 2022, the SEC issued the Staff Accounting Bulletin (SAB) 121, which is originally intended to streamline the accounting treatment of crypto assets by banks and financial institutions. However, the likes of Patrick McHenry, chairman of the US House Financial Services Committee, have come out strongly against the ‘harmful’ nature of the rule. McHenry said the US SEC did not go through the “normal process of federal rulemaking” and hence, a Congressional review is appropriate.
In a statement, Chairman McHenry and Senator Cynthia Lummis said,
“SAB 121 greatly harms consumers and is a clear overreach of the authority of the U.S. SEC. SAB 121 was drafted with zero input from prudential regulators and the public, and now Congress must step in to block this harmful rule.”
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