Industry organizations such as the Bank Policy Institute, the American Bankers Association (ABA) banking, and the Financial Services Forum have requested amendments to SAB 121, a regulation that restricts banks' participation in the digital money space. Previously, U.S. lawmakers are seeking to overturn the SEC's Crypto Assets accounting policy, Senator Cynthia Lummis and House Members Wiley Nickel, Mike Flood are pushing to repeal the SEC's Employee Accounting Notice No. 121, a move that makes it more difficult for companies to custody Crypto Assets, and lawmakers issued this resolution under the Congressional Review Act in an attempt to repeal the policy. "Despite the impact of accounting standards on the treatment of assets held in custody by financial institutions, the SEC issued SAB 121 without consultation with prudential regulators," the House member said in a statement. In the face of ultra vires by regulators, it is Congress's role to act as a check and balance. ”

PANews reported on February 2 that, according to CoinDesk, members of the U.S. Congress are trying to remove the controversial SEC accounting announcement (known as Employee Accounting Announcement No. 121), which implies restrictions on companies that want to hold their customers' crypto assets. On Thursday, Senators Cynthia Lummis (R-Wyoming), Rep. Wiley Nickel (N-N.C.) and Mike Flood (N.R.N.) introduced corresponding resolutions in the Senate and House of Representatives formally opposing the accounting standard and concluding that it has no legal force. Rep. Flood said in a statement: "Despite the impact of accounting standards on the treatment of assets under custody by financial institutions, the SEC issued SAB 121 without consultation with prudential regulators, and the SEC issued SAB 121 without a notice and comment process, and Congress's role is to act as a check and balance in the face of ultra vires actions by regulators." Crypto Assets lobbies such as the Digital Chamber of Commerce applauded this effort.

U.S. lawmakers are seeking to overturn the SEC's Crypto Assets accounting policies, and Senators Cynthia Lummis and House Members Wiley Nickel and Mike Flood are pushing to repeal the SEC's Employee Accounting Notice No. 121, a move that makes it more difficult for companies to custody Crypto Assets, and lawmakers issued this resolution under the Congressional Review Act in an attempt to repeal the policy. "Despite the impact of accounting standards on the treatment of assets held in custody by financial institutions, the SEC issued SAB 121 without consultation with prudential regulators," the House member said in a statement. In the face of ultra vires by regulators, it is Congress's role to act as a check and balance. ”

PANews reported on November 16 that according to CoinDesk, Patrick McHenry (R-NC), chairman of the Financial Services Committee of the U.S. House of Representatives, and Rep. Rich Torres (DN.Y) led a group of nine lawmakers to urge the Treasury Department to revise its proposed digital asset tax system. The group supported cryptocurrency representatives and lawyers who called the proposed tax plan a "dangerous and improper ultra vires." "If finalized, the proposed regulation's definition of a digital asset 'broker' is too broad, the definition of 'digital asset' is inadequate, and the unreasonably short comment period could prevent a significant digital asset ecosystem from continuing to exist in the United States. The main crux of the controversy is also how the proposal would treat custodial wallet providers, payment processors, some decentralized finance (DeFi) entities, and other entities as "brokers" for tax reporting purposes.

PANews reported on November 1 that the U.S. Government Accountability Office (GAO) today released the results of an investigation that found that the SEC violated the Congressional Review Act by failing to send its employee accounting bulletin (SAB 121) to Congress. Patrick McHenry, chairman of the U.S. Financial Services Commission, and U.S. Senator Cynthia Lummis jointly issued a statement saying that SAB 121 greatly harms the interests of consumers and clearly exceeds the powers of the SEC. It is subject to congressional review. The SEC later said in a statement that the GAO's opinion does not affect the status of SAB 121. It is reported that SAB 121 requires financial institutions that hold customers' crypto assets to include these assets in their balance sheets. The crypto industry and U.S. Republican lawmakers argue that this undermines the willingness of regulated banks to act as crypto custodians, and that the announcement is inconsistent with the way crypto assets are treated with other assets.

According to Golden Finance, the chairman of the U.S. Financial Services Commission, Patrick McHenry, and U.S. Senator Cynthia Lummis jointly issued a statement saying that the SEC's Employee Accounting Bulletin 121 (SAB 121) issued on April 11, 2022, greatly harms the interests of consumers and clearly exceeds the SEC's authority. McHenry said: The Government Accountability Office confirms many suspicions: SAB 121 is subject to congressional review, a rule that will impose a host of new requirements on financial institutions and other companies to include digital assets on their balance sheets as liabilities for the corresponding assets. Ultimately, this will prevent institutions and companies from providing custody services, making it impossible for Americans to safely and securely host their assets. SAB 121 was drafted with zero input from prudential regulators and the public, and now Congress must step in to stop this harmful rule. "I have serious concerns about the impact of this announcement on consumer protections, and ensuring that well-regulated financial institutions are able to provide safe custody of Americans' financial assets is my top priority, setting an extremely dangerous precedent," Lummis said. I plan to use the Congressional Review Act in the coming weeks to block this provision.

Fox reporter Eleanor Terrett said in a post on the X platform that the SEC has included cryptocurrencies in its 2024 review focus. However, most cryptocurrency companies are not registered with the SEC and therefore do not pay registration fees. Terrett further stated: "Does this indicate that SEC Chairman Gary Gensler is using institutional resources and funds paid by registered companies to prioritize cryptocurrencies, an industry for which he has not yet been authorized to regulate?" Or does the SEC expect more cryptocurrency companies to register with the agency in 2024? ”