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Congressman Wiley Nickel Criticizes SEC’s “Open Hostility” Toward Digital Assets, Calls on Gensler to Withdraw SAB121
Congressman Wiley Nickel (D-CA) has expressed his disapproval of SEC Chair Gary Gensler regarding the agency’s “open hostility” towards cryptocurrency and SAB121. On Wednesday, Nickel sent a letter to Gensler urging him to withdraw the contentious staff accounting bulletin in light of the Senate’s impending vote to nullify it.
SEC, SAB121 Criticized by Rep. Wiley Nickel
Nickel stated, “I strongly encourage you to withdraw SAB121 to safeguard investors, enhance American competitiveness, and honor Congress’s role in the administrative rulemaking process.”
He highlighted that rescinding SAB121 prior to the Senate vote would represent a constructive move towards achieving a balanced approach to crypto regulation and facilitating digital asset custodial banking.
The SEC’s directives on digital asset accounting have faced ongoing criticism for imposing stringent capital requirements on banks seeking to engage with cryptocurrency. Financial institutions involved are mandated to record clients’ liabilities alongside custodied digital assets on their balance sheets.
Today, I sent a letter to @SECGov Chair Gary Gensler calling on the agency to withdraw its Staff Accounting Bulletin 121. Unfortunately, the SEC is turning #crypto into a political football & forcing @POTUS to unnecessarily choose sides on an issue that matters to many Americans. pic.twitter.com/F3L8fZSNR0
— Rep. Wiley Nickel (@RepWileyNickel) May 15, 2024
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In addition to concerns regarding the bulletin’s regulatory approach, U.S. lawmakers have raised questions about the approval process for SAB121. The Government Accountability Office (GAO) determined that the SEC did not report the rule change under the Congressional Review Act (CRA).
Gary Gensler Criticized by U.S. Lawmakers As SAB121 Senate Vote Approaches
Last week, the House approved H.J. Res 109, a bill introduced by Nickel and Representative Mike Flood (R-NE) aimed at invalidating SAB121. Following the House vote, Senator Cynthia Lummis (R-WY) has spearheaded the Senate initiative to nullify the contentious accounting bulletin.
“SAB 121 obstructs well-regulated banks from protecting digital assets, rendering the industry less secure for consumers,” Nickel remarked in a statement last week. “Gary Gensler and the SEC intentionally bypassed the standard regulatory process, constituting a clear overreach of the agency’s authority.”
However, shortly after the House passed Flood and Nickel’s bill, President Joe Biden indicated he would veto efforts to enact the bill into law, citing that it was “issued in response to demonstrated technological, legal, and regulatory risks that have caused substantial losses to consumers.”
“Restricting the SEC’s capacity to uphold a comprehensive and effective financial regulatory framework for crypto-assets would introduce significant financial instability and market uncertainty,” a letter from the White House dated May 8 asserts.
If the Senate approves Lummis’ companion legislation, Nickel’s letter to Gensler may serve as a final effort to persuade Gensler to withdraw SAB121 before it reaches Biden’s desk.
The post Congressman Wiley Nickel Critiques SEC’s “Open Hostility” Towards Digital Assets, Urges Gensler To Withdraw SAB121 appeared first on Cryptonews.
