Summary
TLDR: The House Financial Services Committee voted to advance a resolution to repeal the SEC’s Staff Accounting Bill 121, which requires digital asset custodians to report liabilities for custodied cryptocurrencies. Some legislators argue that the process for issuing SAB 121 was flawed, while others believe it adds consumer protection. The resolution passed in a vote of 31-20 and would need to pass a full floor vote in the House and Senate to repeal SAB 121.
Key Points
1. The House Financial Services Committee voted to advance a resolution attempting to appeal the Security and Exchange Commission’s Staff Accounting Bill (SAB) 121.
2. SAB 121, enacted in March 2022, requires digital asset custodians to report a liability and corresponding assets on their balance sheets for all custodied cryptocurrencies to safeguard against risks and uncertainties.
3. The resolution to repeal SAB 121 was introduced by Committee members Mike Flood and Wiley Nickel, citing a report from the Government Accountability Office that suggested SAB 121 should have been issued as a rule under the official process.