More than 40 Republicans of the United States have united in an appeal for the rescission of the contentious Staff Accounting Bulletin No. 121.
More than 40 Republicans of the United States have united in an appeal for the rescission of the contentious Staff Accounting Bulletin No. 121 expressed by the Securities and Exchange Commission.
The letter addressed to the regulator stated that if it was unwilling or unable to provide the needed relief, then the contentious guidance needed to be rescinded. This move comes as a bipartisan repeal bill was rejected by President Joe Biden back in June.
House Financial Services Committee Chairman Patrick McHenry, along with Senator Cynthia Lummis and 40 other politicians, lashed out at SEC Chairman Gary Gensler in an angry letter dated Sept. 23.
They say it's their belief that SAB 121 treats "all forms of custody by an SEC reporting company" of cryptocurrencies "for purposes of financial statement presentation as a liability," which is disastrous because it undermines consumer protection and stifles financial innovation.
The politicians said the rule was promulgated without the input of "prudent regulators" and strayed from accounting precedent. They said SAB 121 does not faithfully represent the legal and economic responsibilities of custodians and may expose consumers to a loss.
One of the major criticisms in the letter is that the SEC took a path of sidestepping the proper procedures. "By issuing this rule under the guise of staff guidance, the SEC evaded the notice and comment rulemaking process required by the Administrative Procedure Act," the politicians said.
They strongly believe that "rescinding SAB 121 is the only appropriate action and well within the SEC's authority."
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