Crypto Accounting Bulletin SEC Under Scrutiny as Democrat Lawmaker Voices Criticism

SEC Under Fire from Democratic Lawmaker for Handling of Crypto Accounting Bulletin

SEC’s Crypto Bulletin Under Fire: A Balancing Act Gone Wrong

Image source: SEC Chair Gary Gensler. Source: screenshot of a YouTube video / Yahoo Finance

Ah, the SEC, where controversy never sleeps! The US Securities and Exchange Commission (SEC) is currently feeling the heat from Democratic lawmaker Rep. Wiley Nickel, who is not amused by the agency’s handling of a rather contentious bulletin regarding companies’ crypto holdings. Talk about drama in the digital asset world!

According to a recent report from The Block, Rep. Nickel is concerned about the potential consequences of this bulletin, fearing that it could put the safety of our beloved digital assets at risk. Oh, the horror! We can’t let those crypto holdings end up as liabilities on balance sheets, can we?

Adding fuel to the fire, the Government Accountability Office (GAO) has also chimed in, suggesting that the SEC should have sought Congress’s evaluation before implementing the bulletin. It’s like a game of bureaucratic ping-pong! Shouldn’t we have a say in matters that affect our precious crypto? We’re talking about serious Administrative Procedures Act (APA) compliance here!

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So, what is this bulletin that has everyone so riled up? Brace yourselves for the mighty SEC’s Staff Accounting Bulletin No. 121 (SAB 121). Published in March 2022, this masterpiece mandates that companies holding crypto for customers record it as liabilities on their balance sheets. It’s like telling them, “Hey, your digital assets are just liabilities with extra steps. Enjoy!”

But fear not, dear readers, for there might be a silver lining amidst the chaos. The GAO has kindly reminded us that the Congressional Review Act demands agencies to submit a report on a rule to Congress beforehand. Well, well, well…the power of checks and balances prevails! We love it when Congress gets involved in our crypto adventures.

Of course, the drama doesn’t stop there. There’s a whole chorus of critical voices chiming in from all corners of Congress. Rep. Patrick T. McHenry, the Republican big shot from North Carolina and Chair of the House Financial Services Committee, believes the bulletin’s requirements are a burden and might discourage financial institutions from offering custodial services. Oh, the custody of crypto assets, a never-ending conundrum!

But wait, there’s more! Sen. Cynthia Lummis, the Republican maverick from Wyoming and self-proclaimed crypto enthusiast, plans to utilize the Congressional Review Act to block this rule. She insists that it should have been properly introduced as an official rule rather than a mere bulletin. Crypto enthusiasts are cheering from the digital rooftops!

So, my dear digital asset investors, the SEC finds itself caught in the crossfire of legal battles and bureaucratic quandaries. Will Congress save the day? Will our beloved crypto assets be freed from the clutches of balance sheets? Only time will tell. Grab your popcorn, folks, this show is far from over! Stay tuned for the next episode of “Crypto vs. The SEC”!

What are your thoughts on the SEC’s crypto bulletin saga? Share your opinions, conspiracy theories, or wild predictions in the comments below! Let’s discuss, and remember, in the world of blockchain, the drama never ends!

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