Senators join chorus of disapproval of ‘backdoor regulation’ in SEC staff accounting bulletin
United States Senator Bill Hagerty has sent a letter, cosigned by four other Republican senators, to Securities and Exchange (SEC) Commission chair Gary Gensler urging the withdrawal of a staff accounting bulletin, referred to as SAB 121, issued by the agency March 31. According to the senators, the bulletin amounts to “regulation disguised as staff guidance” and does not adhere to the Administrative Procedure Act.
SAB 121 provides guidance on accounting and disclosure for companies that safeguard clients’ crypto assets and allow them to perform transactions with them. The bulletin said those companies, which include platforms such as Coinbase (NASDAQ:) and Robinhood (NASDAQ:), should list digital assets as liabilities on their balance sheets at fair value. The need for the new accounting procedure was chalked up to “increased risks” from crypto assets.