🚨 JUST-IN 🇺🇲 REPUBLICANS ON THE FINANCIAL AND BANKING COMMITTEES, LED BY PATRICK MCHENRY AND SENATOR LUMMIS, HAVE SENT A LETTER TO SEC CHAIR GARY GENSLER. THEY ARE DEMANDING THE RESCISSION OF STAFF ACCOUNTING BULLETIN 121 AHEAD OF TOMORROW'S SEC OVERSIGHT HEARING.

The letter to SEC Chair Gary Gensler, dated September 23, 2024, expresses bipartisan congressional disapproval of Staff Accounting Bulletin No. 121 (SAB 121), which mandates that custodians recognize liabilities for digital assets at their fair market value.

This approach deviates from traditional accounting standards and may not accurately reflect the underlying legal and economic obligations of the custodian.

This misalignment is believed to increase risk to consumers.

The letter criticizes the SEC for issuing SAB 121 without proper consultation and for not following the required rulemaking process under the Administrative Procedure Act.

The lawmakers argue that this has led to inconsistency and a lack of transparency, which undermines investor trust.

They urge the SEC to rescind SAB 121 to ensure Americans have secure access to digital assets.