SAB 121 House Joint Resolution

This House Joint Resolution aims to overturn the SEC's Staff Accounting Bulletin 121 (SAB 121).

SEC’s Staff Accounting Bulletin 121 (SAB 121) is another example of regulatory overreach from the SEC when it comes to digital assets.

• Staff guidance is issued outside of the traditional notice-and-comment rulemaking structure that allows voters and businesses a voice to show their support or opposition for proposed rules and proposed amendments.
• Effectively, a new rule about treatment of digital assets was issued without public notice and comment and with none of the five Senate-confirmed SEC commissioners voting on the rule.

SAB 121 disincentivizes banks from offering digital asset custody at scale and limits banks’ ability to develop safe, innovative use cases for blockchain technology.

• Leading bank and financial institutions including the American Bankers Association, Bank Policy Institute, Financial Services Forum, and the Securities Industry and Financial Markets Association oppose the rule and agency’s departure from long standing custody rules.
• SAB 121 limits banks’ ability to offer safe, well-regulated digital asset custody service for consumers.