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November 1, 2023

Republican Lawmakers Demand Block of SEC's Crypto Accounting Rule

Thando Dlamini
Written byThando DlaminiWriter
Researched byNikos PapadopoulosResearcher

Introduction

Top Republican lawmakers are demanding that the U.S. Securities and Exchange Commission's (SEC) April 2022 rule on crypto accounting be blocked. They argue that the rule, known as Staff Accounting Bulletin (SAB) 121, is harmful and prevents companies from revealing their crypto asset balances.

Republican Lawmakers Demand Block of SEC's Crypto Accounting Rule

Background

On April 11, 2022, the SEC issued SAB 121, which aims to streamline the accounting treatment of crypto assets by banks and financial institutions. However, Chairman Patrick McHenry and Senator Cynthia Lummis believe that the SEC did not follow the normal process of federal rulemaking when implementing this rule.

Impact

According to the Republican lawmakers, SAB 121 acts as a deterrent to companies disclosing their crypto asset reserves. This, in turn, prevents institutions and firms from offering custodial services, denying Americans access to safe and secure custody of their assets.

Conclusion

In conclusion, the Republican lawmakers are calling for a Congressional review to block the SEC's crypto accounting rule. They argue that the rule is harmful and restricts companies from disclosing their crypto asset balances, which ultimately denies Americans access to secure custody of their assets.

About the author
Thando Dlamini
Thando Dlamini
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Thando Dlamini, a vivacious 22-year-old from South Africa, seamlessly blends her love for the vibrant world of online casinos with her meticulous localization skills, making the digital gaming experience truly South African.

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