The U.S. House Financial Services Committee has advanced a resolution that rejects SEC Staff Accounting Bulletin (SAB) 121, which was issued to help account for crypto assets in SEC custody. The guidance instructs registered entities responsible for safeguarding crypto assets to include a liability and corresponding asset on their balance sheets. But many legislators and banking industry leaders have objected to such rules, saying they would affect custodians’ other regulatory obligations. The House resolution would enable Congress to invoke the Congressional Review Act to overturn SAB 121 through a simple majority vote in the House and Senate (subject to veto by President Biden).
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