SEC: GAO’s conclusion does not affect status of crypto accounting announcements themselves

The U.S. Government Accountability Office (GAO) today released an investigation finding that the SEC failed to comply with the Congressional Review Act (CRA) by not sending its crypto accounting bulletin SAB 121 to Congress in accordance with official rules. The SEC responded in a statement: "GAO's opinion expresses its view that SAB 121 is a 'rule' of the CRA. The opinion does not otherwise affect the status of SAB 121." It is reported that SAB 121 requires financial companies that hold customers’ crypto assets to record these assets on their own balance sheets and retain capital against these assets. The crypto industry and U.S. Republican lawmakers argued that this undermined the willingness of regulated banks to act as custodians of cryptocurrencies and that the announcement treated crypto assets inconsistently with other assets. (Coindesk)