Top Republican lawmakers are demanding that the U.S. Securities and Exchange Commission's (SEC) April 2022 rule on crypto accounting be blocked. They argue that the rule, known as Staff Accounting Bulletin (SAB) 121, is harmful and prevents companies from revealing their crypto asset balances.
On April 11, 2022, the SEC issued SAB 121, which aims to streamline the accounting treatment of crypto assets by banks and financial institutions. However, Chairman Patrick McHenry and Senator Cynthia Lummis believe that the SEC did not follow the normal process of federal rulemaking when implementing this rule.
According to the Republican lawmakers, SAB 121 acts as a deterrent to companies disclosing their crypto asset reserves. This, in turn, prevents institutions and firms from offering custodial services, denying Americans access to safe and secure custody of their assets.
In conclusion, the Republican lawmakers are calling for a Congressional review to block the SEC's crypto accounting rule. They argue that the rule is harmful and restricts companies from disclosing their crypto asset balances, which ultimately denies Americans access to secure custody of their assets.
