US Congress Throws a Roundhouse Kick to SEC’s SAB 121 Rules in Latest Memo

US Congress Criticizes SEC's SAB 121 Rules in Latest Memo

The SEC’s SAB 121: A Controversial Crypto Custodial Rule

Source: AdobeStock

Oh boy, brace yourselves for some legislative drama! The latest release of the SEC’s Staff Accounting Bulletin (SAB) 121 has stirred up quite a commotion. Several members of the US Congress just couldn’t bear its existence and decided it’s time to make some noise. In a memo dated November 15, they expressed their grievances to the Chairman of the FDIC Board, Acting Comptroller of the Currency Michael Hsu, and other financial bigwigs.

Now, you must be wondering, “What the heck is SAB 121?” Well, my dear digital asset investors, it’s a rule introduced by the SEC that’s got financial institutions, credit unions, and banks offering crypto custodial services on their toes. This rule demands that they keep a specific amount of funds to back their clients’ precious digital assets. Talk about playing it safe!

But hold your horses, Congress ain’t having it! They’re shouting from the rooftops that SAB 121 shouldn’t have any legal effect on these financial institutions. Nope, nuh-uh! Congress believes they shouldn’t be burdened with all this liability and asset accounting. It’s like telling a cheetah to wear ice skates, ain’t gonna fly!

• Exclusive Explosive Unveiling! Nerayoff Drops Bombshell with Leaked 2015 Vitalik Buterin Recordings Exposing Ethereum’s Dark Secrets – Unmasking the Truth!
• CoinShares Snags Exclusive Option to Acquire Valkyrie: A Bitcoin ETF Game-Changer!
• Pyth Network Drops 255 Million Tokens: Get Ready for Some Airdrop Madness!

“Why?” you ask? Well, for starters, SAB 121 was never even brought to the attention of Congress or the Government Accountability Office (GAO). That’s like keeping your best buddy out of the loop when you’re making big decisions. Oops, not cool! Plus, the rule didn’t even make it to the Congressional Record, which is the fancy way of saying it skipped a crucial step in the whole process. So, Congress is saying, “Hey, SEC, you can’t just sneakily gain authority over these institutions without our say-so!”

Now, leading this rebellious charge is Senator Cynthia Lummis, the crypto crusader herself. Back in August 2022, she started this whole ruckus, a true trailblazer. And she’s not alone! Senator Kirsten Gillibrand, Representatives Patrick McHenry, and French Hill have joined the party too, expressing their own concerns about the legality of SAB 121. It’s like a superhero squad standing up against the evil rule!

But wait, there’s more! Over the past couple of years, the SEC has been going crypto-crazy, thanks to their head honcho, Gary Gensler, a former crypto and blockchain professor. He’s been throwing his weight around, classifying crypto assets as securities left and right and even taking legal action against some trading firms. You can almost hear him saying, “You’re a security! And you’re a security! Everyone’s a security!” He’s like the Oprah of the regulatory world.

All this regulatory frenzy has driven platforms like Coinbase to seek greener pastures across the pond. With Gensler’s antics, they’ve set their sights on the UK and EU, looking for new opportunities. Gotta love their “if you can’t beat ’em, join ’em” attitude!

So, who will triumph in this battle of cryptic proportions? Will Congress convince the financial authorities to abolish SAB 121? Or will the SEC’s rule stand tall, demanding custodial compliance? Only time will tell, my friends. Stay tuned for the next thrilling chapter in this legislative clash!

---

Hey there, fellow digital asset enthusiasts! What do you make of this SEC vs. Congress showdown? Are you Team SAB 121 or Team Congressional Rebellion? Let me know your thoughts in the comments below! And remember, the crypto world is filled with surprises, so buckle up and enjoy the ride! 🚀✨

We will continue to update Blocking; if you have any questions or suggestions, please contact us!