US lawmakers seek to overturn SEC's cryptocurrency accounting rules

According to CoinDesk, members of the US Congress are attempting to repeal a controversial accounting notice by the Securities and Exchange Commission (SEC) that imposes restrictions on companies wishing to hold customer crypto assets. Senator Cynthia Lummis (R-Wyo.), along with Representatives Wiley Nickel (D-N.C.) and Mike Flood (R-Neb.), introduced matching resolutions in the Senate and House on Thursday formally opposing this accounting rule and determining its lack of legal effect. SEC's Staff Accounting Bulletin No. 121 for 2022 (SAB 121) requires companies holding customer cryptocurrencies to include them on their own balance sheets, which could force banks wanting to hold crypto assets to maintain what they consider burdensome capital requirements as a hedge against risk.