U.S. Congressman Flood Questions SEC Chair Gensler on SAB 121

WASHINGTON, D.C. – Today, U.S. Congressman Mike Flood questioned the Security and Exchange Commission (SEC) Chair Gary Gensler. Congressman Flood’s line of questioning focused on an SEC staff bulletin, known as SAB 121, that effects the ability of banks to custody digital assets. 

“…the SEC’s justification for issuing the bulletin is based on accounting guidelines that did not exist when the bulletin was issued and rulemaking that was not even started until nearly a year after the bulletin was issued,” said Congressman Flood during the exchange. “It’s possible that the SEC understood there was no strong justification for issuing the bulletin and chose to do it anyway. That would show a straightforward case of regulating by guidance and unsubstantiated theory.”

Video of the hearing can be found by clicking here.