House Passes H.J.Res. 109 with Bipartisan Support to Overturn SEC’s SAB 121
Washington,
May 8, 2024 -
Today, the U.S. House of Representatives passed Representative Mike Flood’s (NE-01) bipartisan H.J.Res. 109, “Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Securities and Exchange Commission relating to ‘Staff Accounting Bulletin No. 121.’”
H.J.Res. 109 overturns the SEC’s SAB 121 under the Congressional Review Act (CRA). By overturning SAB 121, the bipartisan resolution ensures consumers are protected by removing roadblocks that prevent highly regulated financial institutions and firms from acting as custodians of digital assets.
“Staff Accounting Bulletin 121 is one of the most glaring examples of the regulatory overreach that has defined Gary Gensler’s tenure at the SEC,” said Chairman McHenry (NC-10). “SAB 121 requires financial institutions and firms that are safeguarding their customers’ digital assets to hold those assets on their balance sheet, making it cost prohibitive to do so. Rep. Flood’s bipartisan, pro-consumer H.J.Res. 109 nullifies the SEC’s disastrous SAB 121 and brings commonsense into our digital asset policy. This resolution will allow consumers to hold their digital assets in one of the safest ways possible—through highly regulated banks and other financial institutions. I’m pleased to see it pass the House with support from both sides of the aisle and applaud the efforts of Congressmen Flood and Nickel in getting it across the finish line.”
“Since President Biden took office, his administration has made it a point to test the limits of, and take shortcuts around, the public rulemaking processes. Staff Accounting Bulletin, or SAB 121, is one such example. It set a disturbing precedent and is not the appropriate vehicle to promulgate accounting guidance for digital asset custodians. I appreciate the broad support of my colleagues in the House for H.J. Res. 109 and urge the Senate to take action to deliver a full repeal of SAB 121,” said Congressman Mike Flood.
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