The American Bankers Association and three banking associations today urged Senate leaders to support a House joint resolution to overturn a Securities and Exchange Commission staff accounting bulletin that changes the way banks and other publicly traded entities are expected to account for digital assets held in custody. H.J. Res. 109, introduced by Reps. Mike Flood (R-Neb.) and Wiley Nickel (D-N.C.), would overturn SEC Staff Accounting Bulletin 121 if passed by both houses and signed by the president. The House last week approved the resolution by bipartisan vote and it is now before the Senate.
“SAB 121 represents a significant departure from longstanding accounting treatment for custodial assets and threatens the industry’s ability to provide its customers with safe and sound custody of digital assets,” the associations said. “Other, nonbank digital asset platforms subject to SAB 121 are not required to meet the same capital, liquidity, or other prudential standards as banks and therefore do not face the economically prohibitive implications of SAB 121. Limiting banks’ ability to offer these services leaves customers with few well-regulated, trusted options for safeguarding their digital asset portfolios and ultimately exposes them to increased risk.”
