House of Representatives Passes Resolution to Ease Rules on Digital Asset Custody
The US House of Representatives recently approved a bipartisan resolution, H.J.Res. 109, introduced by Representative Mike Flood, to overturn the SEC's Staff Accounting Bulletin (SAB) 121.
This resolution, enacted under the Congressional Review Act (CRA), aims to eliminate barriers for regulated financial institutions and firms interested in offering custodial services for digital assets.
SAB 121, a directive from the SEC, mandates financial institutions and firms to include customers’ digital assets on their balance sheets, which imposes significant financial burdens.
The bipartisan resolution, H.J.Res. 109, seeks to nullify SAB 121, enabling consumers to securely store their digital assets through regulated banks and financial institutions.
Chairman Patrick McHenry applauded the resolution, criticizing SAB 121 for its adverse effects on financial institutions’ ability to engage in digital asset custody.
READ MORE: Nigeria Considers Ban on Peer-to-Peer Cryptocurrency Trading
Congressman Mike Flood emphasized the importance of the resolution, expressing concerns about the Biden administration’s regulatory approach and the precedent set by SAB 121.
The passage of H.J.Res. 109 in the House underscores growing concerns regarding the SEC’s regulatory stance on digital assets. The resolution now awaits consideration in the Senate, with proponents advocating for swift action to repeal SAB 121.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
