SE Nebraska News

U.S. Congressman Mike Flood has commended the bipartisan passage of H.J. Res. 109, a measure that repeals the U.S. Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121, also known as SAB 121.

"Since President Biden took office, his administration has made it a point to test the limits of, and take shortcuts around, the public rulemaking processes. Staff Accounting Bulletin, or SAB 121, is one such example. It set a disturbing precedent and is not the appropriate vehicle to promulgate accounting guidance for digital asset custodians. I appreciate the broad support of my colleagues in the House for H.J. Res. 109 and urge the Senate to take action to deliver a full repeal of SAB 121,” said U.S. Congressman Mike Flood.

Financial Services Committee Chairman Patrick McHenry stated that "Staff Accounting Bulletin 121 is one of the most glaring examples of the regulatory overreach that has defined Gary Gensler’s tenure at the SEC. SAB 121 requires financial institutions and firms that are safeguarding their customers’ digital assets to hold those assets on their balance sheet, making it cost prohibitive to do so." He further lauded Rep. Flood’s bipartisan H.J. Res. 109 for nullifying "the SEC’s disastrous SAB 121 and brings commonsense into our digital asset policy."

McHenry added that this resolution will allow consumers to hold their digital assets in one of the safest ways possible—through highly regulated banks and other financial institutions.

“Today, Democrats and Republicans in the House took an important next step on the road to rescinding the SEC’s Staff Accounting Bulletin No. 121," said U.S. Congressman Wiley Nickel who is leading this bipartisan initiative with Congressman Flood.

Congressman Flood is recognized as the original introducer of H.J. Res. 109 while Congressman Nickel is an original co-sponsor of the measure.