Congressman Flood Applauds Passage of SAB 121 Repeal

WASHINGTON, D.C. – Today, U.S. Congressman Mike Flood applauded the bipartisan passage of H.J. Res. 109, a measure that repeals the U.S. Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121, also known as SAB 121.

“Since President Biden took office, his administration has made it a point to test the limits of, and take shortcuts around, the public rulemaking processes. Staff Accounting Bulletin, or SAB 121, is one such example. It set a disturbing precedent and is not the appropriate vehicle to promulgate accounting guidance for digital asset custodians. I appreciate the broad support of my colleagues in the House for H.J. Res. 109 and urge the Senate to take action to deliver a full repeal of SAB 121,” said U.S. Congressman Mike Flood.

“Staff Accounting Bulletin 121 is one of the most glaring examples of the regulatory overreach that has defined Gary Gensler’s tenure at the SEC. SAB 121 requires financial institutions and firms that are safeguarding their customers’ digital assets to hold those assets on their balance sheet, making it cost prohibitive to do so. Rep. Flood’s bipartisan, pro-consumer H.J. Res. 109 nullifies the SEC’s disastrous SAB 121 and brings commonsense into our digital asset policy. This resolution will allow consumers to hold their digital assets in one of the safest way possible—through highly regulated banks and other financial institutions. I’m pleased to see it pass the House with support from both sides of the aisle and applaud the efforts of Congressmen Flood and Nickel in getting it across the finish line,” said Financial Services Committee Chairman Patrick McHenry. 

“Today, Democrats and Republicans in the House took an important next step on the road to rescinding the SEC’s Staff Accounting Bulletin No. 121. SAB 121 prevents well-regulated banks from safeguarding digital assets, making the industry less safe for consumers. Gary Gensler and the SEC deliberately sidestepped the customary regulatory process, amounting to an obvious overreach of the agency’s authority. It’s past time for us to take action to protect investors and the financial system, encourage innovation, bolster American competitiveness, and restore the role of Congress in the administrative rulemaking process. I thank my colleagues on both sides of the aisle for joining this bipartisan initiative I’m leading with Congressman Flood and look forward to working closely with Senator Lummis who is spearheading this effort in the Senate,” said U.S. Congressman Wiley Nickel

Congressman Flood is the original introducer of H.J. Res. 109 and Congressman Nickel is an original co-sponsor of the measure.