A bipartisan group of U.S. House of Representatives and U.S. Senator Cynthia Lummis have penned a letter to U.S. President Joe Biden urging him not to veto Staff Accounting Bulletin (SAB) 121 Congressional Review Act (CRA), which passed the Senate and House with strong bipartisan support.
The letter states, “SAB 121 was published on March 31, 2022, and requires covered entities that safeguard digital assets on behalf of customers to consolidate these assets onto their balance sheet and provide certain disclosures. This accounting treatment is contrary to that of all other assets and puts consumers at risk by precluding the most regulated financial institutions from safeguarding digital assets.”
The letter further states, “If SEC Chair Gensler is going to insist on the continued application of this misguided rule, then Congress’ disapproval of this rule should be signed into law or allowed to go into effect.”
The bipartisan group includes House Financial Services Committee Chairman Patrick McHenry (R-NC), U.S. Senator Cynthia Lummis (R-WY), Reps. French Hill (R-AR), Andy Barr (R-KY), Tom Emmer (R-MN), Mike Flood (R-NE), Ritchie Torres (D-NY), Wiley Nickel (D-NC), and Dan Meuser (R-PA).
President Biden’s official response is to Veto SAB 121 CRA.
