More than 40 US Republican lawmakers wrote to Gary Gensler, urging the SEC to repeal the crypto accounting policy SAB 121

Odaily Odaily reported that Patrick McHenry, Chairman of the U.S. House Financial Services Committee, Senator Cynthia Lummis and 40 other lawmakers wrote to Gary Gensler, Chairman of the U.S. SEC, on September 23, saying that SAB 121 subverted the custody rules for cryptocurrencies, weakened consumer protection, and stifled financial innovation, and once again called for its repeal. The 42 politicians also claimed that SAB 121 (a proposed rule requiring entities that custody cryptocurrencies that report to the SEC to record these assets as liabilities on their balance sheets) was issued without consulting any "prudential regulators" and that the accounting method "deviates from established accounting standards." This will fail to reflect the legal and economic obligations of custodians and put consumers at risk of loss. Politicians also criticized the SEC's Office of the Chief Accountant for working with certain agencies to circumvent balance sheet reporting requirements, which could lead to comprehensive inconsistencies. (Cointelegraph)