Congressman Flood Applauds Senate Passage of SAB 121 Repeal

WASHINGTON, D.C. – Today, U.S. Congressman Mike Flood issued a statement after the passage of H.J. Res. 109 by the U.S. Senate by a vote of 60-38. H.J. Res. 109 is a resolution introduced under the Congressional Review Act (CRA) to repeal the U.S. Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin (SAB) 121. SAB 121 discourages banks from providing custodial services to digital assets investors by requiring them to keep those assets on-balance sheet.

“This is a landmark result for digital asset regulation. Both the House and Senate – including Majority Leader Schumer in the Senate – have delivered a clear, bipartisan message to the SEC that SAB 121 needs to go.” Rep. Flood said. “Thank you to Senator Lummis for leading this effort in the Senate and thank you to the bipartisan coalition that supported this repeal in both the House and Senate. It is clear there is overwhelming opposition to SAB 121, and I urge President Joe Biden to reconsider his previous statement of intent to veto the resolution. The President should sign my resolution to ensure the SEC reverses course and sets America on a path to growing our digital financial future.” 

Rep. Flood is the original introducer of H.J. Res. 109, which passed the House last week on a bipartisan basis. U.S. Senator Cynthia Lummis (R-WY) introduced the Senate companion measure. 

Rep. Flood is a member of the House Financial Services Committee and the Subcommittee on Digital Assets, Financial Technology, and Inclusion.