Lawmakers Urge SEC to Revoke Controversial Crypto Accounting Rule SAB 121
- Senator Cynthia Lummis and Congressman Patrick McHenry, along with bipartisan support, push for the revocation of SEC’s SAB 121.
- SAB 121 mandates crypto custodians to list customer assets as liabilities, causing financial strain and potential risks for consumers.
- Critics argue the rule was implemented without proper consultation and contradicts generally accepted accounting principles (GAAP).
A striking aspect of the debate is the accusation that SEC’s Office of Chief Accountant held selective, closed-door meetings with industry players, allowing some to bypass SAB 121’s requirements—leading to ambiguity and unequal application of the rule.
The call for revocation of SAB 121 reflects growing scrutiny of the SEC’s approach to cryptocurrency regulation. As SEC Chair Gary Gensler prepares for Congressional testimony, the outcome could reshape the regulatory landscape for digital assets in the U.S.
