Block Harmful US SEC Crypto Accounting Rule: Republicans

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Adding on to the outright criticism of the U.S. Securities and Exchange Commission’s (SEC) overreach round crypto asset regulation, high Republican lawmakers are demanding that an April 2022 guidelines issued by the SEC round crypto accounting be blocked.

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US SEC’s SAB 121 To Be Blocked?

On April 11, 2022, the SEC issued the Staff Accounting Bulletin (SAB) 121, which is initially supposed to streamline the accounting remedy of crypto property by banks and monetary establishments. However, the likes of Patrick McHenry, chairman of the US House Financial Services Committee, have come out strongly towards the ‘harmful’ nature of the rule. McHenry mentioned the US SEC didn’t undergo the “normal process of federal rulemaking” and therefore, a Congressional evaluate is suitable.

In an announcement, Chairman McHenry and Senator Cynthia Lummis said,

“SAB 121 greatly harms consumers and is a clear overreach of the authority of the U.S. SEC. SAB 121 was drafted with zero input from prudential regulators and the public, and now Congress must step in to block this harmful rule.”

The Republican lawmakers famous that the rule acts as a deterrent to corporations revealing crypto asset balances of their reserves. This would forestall establishments and corporations from providing custodial companies—denying Americans entry to protected and safe custody of their property, they mentioned.

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