SAB 121, the SEC’s accounting bulletin that blocks banks from providing digital asset custody, was up for debate again in Congress yesterday. After both the House and Senate voted to cancel SAB 121, the President vetoed their resolution, meaning the custody blocker still stands. The House had planned a vote to overturn the veto, requiring two thirds in favor. They held the debate yesterday, but postponed the vote. [Update: the vote failed]. In her testimony, Maxine Waters, the ranking member on the Financial Services Committee, said the SEC is discussing amending the rule for banks.
“One special interest group representing large custody banks has provided the SEC with targeted modifications to SAB 121, which would avoid the sledgehammer effect of this legislation,” said Ms Waters.
“So I understand that the SEC may be close to reaching an agreement on these modifications, which would ensure that well-regulated entities like custody banks can offer crypto custody services consistent with SAB 121. Nevertheless, despite the fact that this issue will soon be moot, Republicans are pushing ahead anyway with this blunt and overly broad approach. So I urge my colleagues to oppose this veto override.”
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