Congressman Flood Votes to Control Spending, Advances SAB 121 Push Back

WASHINGTON, D.C. – Today, U.S. Congressman Mike Flood issued a statement following passage of H.R. 2882, The Further Consolidated Appropriations Act, 2024. The package included report language crafted by Rep. Flood that pushes back on the U.S. Securities & Exchange Commission’s (SEC) Staff Accounting Bulletin (SAB) 121. SAB 121 prevents banks from providing custodial services to digital assets investors by requiring them to keep those assets on-balance sheet.

“Today’s appropriations package helps control federal spending while strategically investing in defense spending. Thank you to Speaker Johnson for his work to secure these conservative wins while having to negotiate with Democrats who control the Senate and White House. Additionally, this package includes report language that pushes back on SAB 121. The SEC issued SAB 121 without conferring with prudential regulators despite the accounting standard’s effects on financial institutions’ treatment of custodial assets. The language passed in this package requires the SEC to conduct this consultation, and I’ll be eagerly following up with the SEC to track their progress in complying with this new directive from Congress.”

More information about the Fiscal Year 2024 appropriations package can be found here.