The US Congress is considering proposing a vote on SAB 121

Pro-cryptocurrency U.S. Republicans are poised to lash out at the Securities Exchange Commission (SEC) this week, demanding that the agency rescind its current guidance, which they argue hinders banks from offering crypto custody services. On Wednesday, the House will vote on a joint resolution introduced by Rep. Mike Flood to veto Employee Accounting Notice 121 (commonly known as SAB 121) to Congress. The Senate also introduced a companion resolution.
SAB 121 outlines SEC staff opinions on the risks that cryptocurrency custodians should consider and sets out relevant disclosure requirements under federal securities laws.
While the SEC has positioned the SAB as guidance rather than a formal rule, Flood said on Monday that SAB 121 represents both a change in policy and a controversial one. The SEC has also bypassed the traditional SAB development process, which typically involves consultations with federal banking agencies.