WASHINGTON – Barbara Comstock, Executive Director of the American Consumer & Investor Institute, released the following statement today applauding House passage of H.J. Res. 109, legislation introduced by U.S. Representatives Mike Flood (R-NE) and Wiley Nickel (D-NC) to overturn the U.S. Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121 (SAB 121).
“The SEC’s Staff Accounting Bulletin 121 is yet another misguided SEC policy that has rightfully drawn bipartisan opposition. The SEC skirted the legal requirements for issuing such a rule, denying the public and federal banking regulators the opportunity to weigh in. The rule itself is a disaster for retail investors, essentially precluding regulated banks from providing safe custody of digital assets.
“Under Chairman Gary Gensler, the SEC has handed down a slew of far-reaching regulations that defy commonsense and will make it harder for Americans to invest and grow their wealth. I am encouraged by the bipartisan support this resolution received in the House and urge the Senate to quickly follow suit.”
SAB 121 requires certain companies that provide digital asset custody services to their customers to reflect those holdings as a liability on the company’s balance sheets. In October 2023, the non-partisan Government Accountability Office issued a report concluding that SAB 121 did constitute a rule, contrary to the SEC’s claim that it did not, making it subject to the Congressional Review Act.
U.S. Senator Cynthia Lummis (R-WY) has introduced companion legislation in the Senate.
