Several members of Congress have submitted a memo urging financial authorities to clarify that SEC Staff Accounting Bulletin 121 (SAB 121) is not enforceable. The memo argues that SAB 121 should have no legal effect and that banks and other financial institutions should not be required to comply with it. SAB 121 is a rule that requires banks to hold the crypto assets of their customers on their balance sheets, which has been criticized by the industry and Republican lawmakers. The Government Accountability Office (GAO) has determined that SAB 121 should undergo congressional review, based on a letter from Senator Lummis. The memo expresses concern that enforcing this rule would set a worrisome precedent and grant the SEC regulatory authority over institutions not authorized by Congress. In June, five Republican senators wrote to SEC Chair Gary Gensler expressing their disapproval of the bulletin, and Representative Mike Flood also criticized it during a committee hearing.

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Information	Details
Geography	North America
Countries	🇺🇸
Sentiment	negative
Relevance Score	1
People	Cynthia M. Lummis, Ritchie Torres, French Hill, Kirsten Gillibrand, Patrick McHenry
Companies	Acting Comptroller of the Currency, Government Accountability Office (GAO), National Credit Union Administration, SEC Staff Accounting Bulletin 121 (SAB 121), Federal Deposit Insurance Commission
Currencies	None
Securities	None