Congressman Wiley Nickel Slams SEC’s “Open Hostility” Towards Digital Assets, Urges Gensler To Rescind SAB121
Congressman Wiley Nickel (D-CA) has criticized SEC Chair Gary Gensler over the agency’s “open hostility” towards crypto and SAB121. Nickel sent a letter to Gensler on Wednesday urging him to rescind the controversial staff accounting bulletin amidst the Senate vote to nullify it.
Nickel wrote, “I strongly encourage you to withdraw SAB121 to protect investors, bolster American competitiveness, and respect Congress’s role in the administrative rulemaking process.”
He emphasized that withdrawing SAB121 before the Senate vote would be a positive step towards balancing crypto regulation and allowing for digital asset custodial banking.
The SEC’s guidance on digital asset accounting has long been criticized for its stringent capital requirements on banks looking to enter crypto. Participating financial institutions are required to list clients’ liabilities alongside custodied digital assets on their balance sheets.
Today, I sent a letter to @SECGov Chair Gary Gensler calling on the agency to withdraw its Staff Accounting Bulletin 121. Unfortunately, the SEC is turning #crypto into a political football & forcing @POTUS to unnecessarily choose sides on an issue that matters to many Americans. pic.twitter.com/F3L8fZSNR0
— Rep. Wiley Nickel (@RepWileyNickel) May 15, 2024
In addition to scrutiny regarding the bulletin’s regulatory stance, U.S. lawmakers have cast doubt over SAB121’s approval process. The Government Accountability Office (GAO) found that the SEC failed to report the rule change under the Congressional Review Act (CRA).
Last week, the House passed H.J. Res 109, a bill Nickel and Representative Mike Flood (R-NE) introduced to invalidate SAB121. Following the House vote, Senator Cynthia Lummis (R-WY) has led the Senate push
