Mon Sep 23 21:53:33 UTC 2024: ## Republican Lawmakers Renew Push to Scrap SEC’s Controversial Crypto Accounting Rule
**WASHINGTON, D.C.** – A group of Republican lawmakers in both the House and Senate have reignited their fight against the Securities and Exchange Commission’s (SEC) special accounting rule for crypto assets, known as Staff Accounting Bulletin 121 (SAB 121). Led by House Financial Services Chair Rep. Patrick McHenry and Sen. Cynthia Lummis (R-Wyo.), the lawmakers have sent a letter urging the SEC to rescind the rule.
The letter, signed by 13 senators and 29 House members, underscores the growing tension between Congress and regulators regarding crypto policy. The rule, issued in March 2022, requires entities that safeguard digital assets for customers to categorize these assets as liabilities on their balance sheets.
This directive has faced widespread criticism from the crypto industry, with critics arguing that it disrupts standard practices and could significantly increase costs for custody providers. Jennifer Schulp of the Cato Institute has pointed out that the rule “upended generally accepted practices” in asset custody.
Further fueling the controversy, the SEC’s chief accountant has recently acknowledged instances where companies’ arrangements fall outside the scope of SAB 121. The GOP lawmakers argue that these opaque consultations have created additional confusion within the industry.
The latest push comes after Congress passed legislation to overturn the rule, which was subsequently vetoed by President Biden in May. The bipartisan support for overturning the rule reflects the increasing political momentum surrounding crypto regulation, especially as the 2024 presidential election nears.
With both Democratic candidate Kamala Harris and Republican challenger Donald Trump expressing support for digital assets, it is highly likely that crypto and digital assets will become a central point of contention in the upcoming campaign.
First Piper 