US lawmaker Wiley Nickel has urged the Gary Gensler-led Securities and Exchange Commission (SEC) to repeal the Staff Accounting Bulletin 121 (SAB 121) before the impending Senate vote.SAB 121 requires financial institutions custodying crypto to hold these assets on their balance sheets. Several stakeholders have spoken against the regulation, arguing that it hampers the sector’s growth.However, President Joe Biden said he would veto any attempt to overturn SAB 121. His administration said it “strongly opposes” the change because it would interfere with the SEC’s efforts to protect crypto investors.Nonetheless, a non-partisan House of Representatives passed the resolution that rejected the contentious regulation last week.In a May 15 letter to the SEC Chair, Nickel advised that withdrawing the directive would be prudent as bipartisan support swells ahead of the Senate decision. He said:“It’s the mission of the SEC to protect investors. However, SAB121 does just the opposite by preventing highly regulated American banks from placing digital assets in their custody at scale.”The lawmaker pointed out that the resolution had pushed US investors towards offshore custody alternatives and hindered banks from participating in custody services for newly introduced Bitcoin ETFs. This, he cautioned, poses a potential concentration risk to the financial system as most issuers rely on a single non-bank entity.Moreover, Wiley criticized the SEC for bypassing the rulemaking process in issuing SAB 121, contending that the Staff Accounting Bulletin is intended to clarify existing policies, not create new ones.He added:“The SEC’s open hostility toward the digital assets industry isn’t serving President Biden’s best interests. The SEC is turning cryptocurrency regulation into a political football an forcing President Biden to choose sides on an issues that matters to many Americans.”Oluwapelumi values Bitcoin’s potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.AJ, a passionate journalist since Yemen’s 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting. Your daily dose of must-have crypto news and deep dives. Direct to your inbox.The S-1 filing follows the SEC’s approval of NYSE Arca’s proposed rule change on behalf of ProShares.Rob Marrocco believes crypto ETFs beyond Bitcoin and Ethereum are unlikely without first establishing a futures market or changing regulation.Ripple said Standard Custody CEO Jack McDonald would help the firm achieve its USD-backed stablecoin plans.The examinations will determine S&C’s awareness of FTX misconduct and potential conflicts during SBF’s Robinhood shares acquisition.CryptoSlate’s latest market report dives deep into the effects corporate Bitcoin purchases have on the market.Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
