On May 8, the U.S. House of Representatives passed
H. J. Res. 109, the first step in an attempt to nullify the SEC’s
Staff Accounting Bulletin No. 121 (SAB 121) under the Congressional Review Act. SAB 121 describes how the SEC expects entities to account for and disclose their custodial obligations to “safeguard crypto-assets held for their platform users,” and has been in effect since April 11, 2022.
As previously covered by InfoBytes, in October 2023, the GAO
found SAB 121 was a rule, not guidance, making SAB 121 subject to the Congressional Review Act.
