Senator Elizabeth Warren described support for the SEC’s Staff Accounting Bulletin (SAB) 121 during a senate hearing on May 16.Warren asserted that the bulletin, which applies to companies that deal with crypto, is designed to provide accounting guidance.She said that SAB 121 “simply clarifies” how companies should account for risks related to crypto and make such risks visible in their disclosures. Relevant risks include hacks, theft, and the loss of crypto when a safeguarding company enters bankruptcy.She said:“The vote today is about ensuring that the SEC is able to issue guidance that will help companies …. produce strong, consistent, timely and meaningful accounting disclosures”Warren asserted that the bulletin does not require crypto platforms to add customers’ crypto to their balance sheet — a statement at odds with House Financial Services Committee Chairman Patrick McHenry, who previously said that the bill “requires financial institutions and firms that are safeguarding their customers’ digital assets to hold those assets on their balance sheet.”Warren added that the bulletin does not make a platform the owner of its customers’ crypto.Warren made her comments before a senate vote on HJ Res. 109, which had the potential to overturn the bulletin. She opposed the vote itself, stating:“ We should not be holding this vote, and all byitself that is a good enough reason to vote no.Warren stated that because the SEC published its bulletin more than two years ago, the current vote falls outside the time limit for congressional review.Warren also asserted that the matter is “far outside the scope” of the Congressional Review Act (CRA) because the bulletin is not a notice and comment rule. She said the CRA does not apply to staff bulletins and that such bulletins do not even have the force of law.Contrary to Warren, the US Government Accountability Office (GAO) determined SAB 121 to be a rule for the purposes of the CRA in October 2023.A significant majority of the Senate voted to overturn SAB 121 on May 16 after the House of Representatives voted to advance HJ Res. 109 on May 8.President Joe Biden intends to veto the resolution. The Senate vote did not produce a significant enough majority to prevent the presidential veto.Biden must veto the bill within 10 days of it reaching his desk.Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada’s West Coast.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. Stay ahead in the crypto game: Follow us on X for daily updates and analysis.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.
