U.S. Representative Mike Flood has voiced his approval following the Senate's passage of H.J. Res. 109. This bipartisan resolution, introduced under the Congressional Review Act (CRA), aims to repeal the U.S. Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin (SAB) 121.
In a press release issued by Flood, it was reported that the Senate passed H.J. Res. 109 on May 16 with a vote of 60-38. "This is a landmark result for digital asset regulation. Both the House and Senate—including Majority Leader Schumer in the Senate—have delivered a clear, bipartisan message to the SEC that SAB 121 needs to go," said Flood.
According to another press release issued by Financial Service’s Committee Chairman Patrick McHenry, on May 8, the House passed H.J. Res. 109, "Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Securities and Exchange Commission relating to ‘Staff Accounting Bulletin No. 121."
McHenry said in the press release after the House's passage of it: "Staff Accounting Bulletin 121 is one of the most glaring examples of regulatory overreach that has defined Gary Gensler’s tenure at the SEC," He added: "SAB 121 requires financial institutions and firms that are safeguarding their customers’ digital assets to hold those assets on their balance sheet, making it cost prohibitive to do so."
Flood further stated in his press release: "Thank you to Senator Lummis for leading this effort in the Senate and thank you to the bipartisan coalition that supported this repeal in both the House and Senate. It is clear there is overwhelming opposition to SAB 121, and I urge President Joe Biden to reconsider his previous statement of intent to veto the resolution. The President should sign my resolution to ensure the SEC reverses course and sets America on a path to growing our digital financial future."
