The U.S. Congress is considering bringing SAB 121 to a vote

US Republicans who support cryptocurrencies are preparing to fiercely criticize the US Securities and Exchange Commission (SEC) this week, demanding that the agency withdraw its current guidance, which they believe hinders banks from providing cryptocurrency custody services. On Wednesday, the House will vote on a joint resolution introduced by Representative Mike Flood, which aims to reject Staff Accounting Bulletin (SAB) No. 121. The Senate has also introduced a companion resolution.

SAB 121 outlines the SEC staff's views on the risks that cryptocurrency custodians should consider and lists relevant disclosure requirements under federal securities laws.

Although the SEC positions SAB as guidance rather than formal rules, Flood said on Monday that SAB 121 represents both a policy change and a controversial change. The SEC also bypassed the traditional SAB development process, which typically involves consultation with federal banking agencies.