Several U.S. lawmakers jointly issued a letter urging regulatory agencies not to implement the SEC’s SAB 121

U.S. House Financial Services Committee Chairman Patrick McHenry and Senator Cynthia Lummis, along with other bipartisan lawmakers, sent a letter to regulators (Office of the Comptroller of the Currency, Board of Directors of the Federal Reserve Board, Federal Deposit Insurance Corporation and National Credit Union Administration) urging them to make this clear Non-implementation of Securities and Exchange Commission (SEC) Accounting Pronouncement SAB 121. This action comes after the Government Accountability Office (GAO) ruled that SAB 121 constitutes a "rule" under the Congressional Review Act (CRA). Lawmakers pointed out that SAB 121’s accounting treatment deviates from established standards and may not accurately reflect the legal and economic obligations of trustees, increasing the risk of consumer losses. In addition, the announcement was not submitted to Congress or GAO, nor was it published in the Congressional Record pursuant to the Congressional Review Act, and therefore should not have legal effect. Therefore, lawmakers are asking regulators to clarify, through guidance or other action, that SAB 121 is unenforceable under the recent GAO ruling.