Summary
House Financial Services Committee Chair Patrick McHenry aims to rescind a Securities and Exchange Commission (SEC) bulletin that sets accounting standards for firms that custody crypto. A joint resolution to block the bulletin, known as SAB 121, was introduced by Sen. Cynthia Lummis, Reps. Mike Flood, and Wiley Nickel. McHenry, who has been supportive of crypto, has led efforts to advance crypto bills and holds influence as the committee chair. SAB 121 has faced criticism from crypto advocates who believe it undermines consumer protection. The Financial Services Forum expressed concerns over the resolution, stating that it hinders banks from offering digital asset custody services. Lawmakers filed the joint resolution under the Congressional Review Act, and it was expected to be discussed in 2024 after a Government Accountability Office report stated that the guidance needed to be presented to Congress.
Key Points
1. House Financial Services Committee Chair Patrick McHenry aims to rescind a Securities and Exchange Commission bulletin that sets accounting standards for firms that custody crypto.
2. Sen. Cynthia Lummis and Representatives Mike Flood and Wiley Nickel introduced a joint resolution to block the SEC’s Staff Accounting Bulletin No. 121, which requires firms to record customer crypto holdings as liabilities.
3. McHenry, a supporter of crypto, has led efforts to advance crypto bills and holds influence as the House Financial Services Committee chair. The bulletin has faced criticism from crypto advocates, while SEC Chair Gary Gensler has defended it citing concerns for customers in bankruptcy court.
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