WASHINGTON – Barbara Comstock, Executive Director of the American Consumer & Investor Institute, released the following statement today applauding bipartisan Senate passage of H.J. Res. 109, a resolution to overturn the U.S. Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121 (SAB 121). The measure was led by U.S. Senator Cynthia Lummis (R-WY) in the Senate and U.S. Representatives Mike Flood (R-NE) and Wiley Nickel (D-NC) in the House. It passed the House last week and is now headed to the president’s desk.
“Bipartisan majorities in both the House and Senate have made clear that SAB 121 must be scrapped. It is terrible policy that will throttle growth and innovation in the digital asset sector. I commend Senator Cynthia Lummis and Congressmen Mike Flood and Wiley Nickel for leading this effort to protect retail investors and the financial institutions and firms that serve them. President Biden should take into account the broad, bipartisan support for this resolution and sign it into law without delay.”
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.