Summary
TLDR: The U.S. House Financial Services Committee is questioning the SEC’s oversight of the crypto industry, particularly regarding Staff Accounting Bill 121. The SEC is facing criticism for enacting SAB 121 without consulting prudential regulators and not submitting a report to Congress. Eleven U.S. state attorneys general have filed a brief challenging the SEC’s authority over crypto firms. SEC Commissioner Hester Peirce admits the regulator is in “enforcement-only mode,” causing concern among developers about building new technology.
Key Points
1. The U.S. House Financial Services Committee voted to appeal Staff Accounting Bill 121, which restricted banks from acting as custodians of digital assets, leading to criticism of how the measure was enacted.
2. Eleven U.S. state attorneys general filed a joint amicus brief challenging the SEC’s authority over crypto firms in the lawsuit against Payward Ventures, arguing that the SEC’s enforcement action exceeds its delegated powers.
3. SEC Commissioner Hester Peirce highlighted concerns about the regulator being in “enforcement-only mode,” leading developers to worry about building new technology and avoiding legal issues instead of focusing on innovation.