Gabung/ Daftar

US Senate to Vote on Joint Resolution 109, Aiming to Invalidate SEC's SAB 121

16/05 03:11

According to Blockworks, the US Senate is set to vote on Joint Resolution 109 this Thursday. Insiders from Capitol Hill anticipate that the resolution will garner sufficient Democrat support to pass. Joint Resolution 109, which received bipartisan approval in the House of Representatives last week, seeks to nullify the Security and Exchange Commission’s (SEC) contentious Staff Accounting Bulletin (SAB) 121. Introduced in March 2022 and implemented the following month, SAB 121 mandates that digital asset custodians report a liability and 'corresponding assets' on their balance sheets for all custodied cryptocurrencies. Although not an official agency rule, which would have necessitated a public comment period, SEC staff stated that SAB 121 is designed to protect against the 'significant risks and uncertainties associated with safeguarding crypto assets.' In the Republican-dominated House, 21 Democrats voted for the resolution. To pass in the Senate, the resolution requires a simple majority, implying that at least two Democrats and all Republican Senators would need to vote in favor. Four individuals familiar with the situation informed Blockworks that several Democratic senators plan to vote in favor. Sen. Kirsten Gillibrand, D-N.Y., a long-standing crypto advocate, confirmed to Blockworks that she will vote in favor of Joint Resolution 109 on Thursday. Gillibrand criticized the rule for being issued without proper consultation with the respective regulatory agencies or Congress and without a proper notice and comment period. She also expressed concern that the rule imposes an accounting approach that deviates from established standards, compelling financial institutions to count their customers’ digital assets as their own, which could limit consumer options and reduce consumer protection in bankruptcy cases. Last year, Gillibrand co-signed a bipartisan letter opposing SAB 121 and requesting intervention from the Federal Reserve, Federal Deposit Insurance Corporation, National Credit Union Administration, and Office of The Comptroller of the Currency. While Democratic Reps. Ritchie Torres of New York and Wiley Nickel of North Carolina also signed the letter, Gillibrand was the only senator from her party who supported the effort. Nickel wrote a letter to SEC Chair Gary Gensler on Wednesday, urging the agency head to withdraw SAB 121 before Thursday’s Senate vote. As of Wednesday afternoon, the SEC had not responded to the letter. The White House announced last week that if the legislation reaches President Joe Biden’s desk, he would veto it. Gensler defended SAB 121 in December, stating it was 'just a staff accounting bulletin,' and it aligns with precedent set in US bankruptcy court. The SEC did not immediately respond to Blockworks’ request for comment.

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