According to Foresight News, several US lawmakers have submitted a memorandum urging major financial authorities, including the Chairman of the Federal Deposit Insurance Commission and the Comptroller of the Currency, to abolish the US Securities and Exchange Commission's (SEC) Staff Accounting Bulletin 121 (SAB 121). The memo states that federal banking agencies and the National Credit Union Administration should not require banks, credit unions, and other financial institutions providing custodial services for digital assets to comply with SAB 121.
SAB 121 stipulates that crypto assets of bank customers should be retained on the bank's balance sheet, reflecting the value of the assets, and requires maintaining capital for these assets. Industry representatives and several US legislators believe that this damages the willingness of regulated banks to act as custodians for cryptocurrencies and treats crypto assets differently from other assets.