United States of America: Introduced Resolution providing for congressional disapproval of the SEC Staff Accounting Bulletin No. 121 (House Resolution 109)

On 1 February 2024, the Resolution providing for congressional disapproval of the SEC Staff Accounting Bulletin No. 121 (House Resolution 109) was introduced in the House of Representatives. The Resolution would express Congress' disapproval of the Staff Accounting Bulletin (SAB) No. 121 regarding the accounting for obligations to safeguard crypto-assets an entity holds for platform users, nullifying the rule. The SAB was adopted by the Securities and Exchange Commission's (SEC) staff. The SAB serves as an interpretation guideline, and the staff notes that offering crypto transaction services poses unique risks that impact the entity offering those services' operations and financial condition. Therefore, according to the SAB, the entity "should present a liability on its balance sheet to reflect its obligation to safeguard the crypto-assets held for its platform users".