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House gives nod to erase SEC crypto rule.

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House approves repeal of SEC crypto custody rule on procedural grounds

TLDR:

  • The House passed a resolution to repeal a SEC rule requiring custodians to list cryptocurrencies as liabilities
  • A group of banking associations and lawmakers have criticized the rule for its broad definition of digital assets

The House passed a joint resolution on a 228-182 vote to repeal a staff accounting bulletin from the SEC that requires custodians to list cryptocurrencies on their balance sheets as liabilities. The rule, known as SAB 121, was released in 2022 and has faced criticism for its implications on the financial and digital asset industries. Lawmakers and industry groups argue that the rule goes beyond the scope of an accounting bulletin and should have been subjected to public feedback and regulatory scrutiny before implementation.

Key Points:

The SEC rule requiring custodians to list cryptocurrencies on their balance sheets as liabilities has been met with criticism from banking associations and lawmakers

Lawmakers have introduced legislation to repeal the rule, citing concerns about its broad definition of digital assets and lack of formal rulemaking processes

The Government Accountability Office has stated that the SEC rule meets the definition of a rule under the Congressional Review Act, but critics argue that it should have gone through proper regulatory processes before implementation


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