Clarksville Times

Representative Mike Flood from NE-01 testified in front of the House Committee on Rules in support of his resolution, H.J.Res. 109, aimed at overturning the Securities and Exchange Commission's (SEC) Staff Accounting Bulletin No. 121 (SAB 121). Flood highlighted the importance of consumer protection and financial innovation in his testimony.

Flood criticized the SEC's handling of SAB 121, stating, "It is unfortunate that the SEC would attempt to circumvent the rulemaking process while falsely claiming that SAB 121 is simply non-binding staff-level guidance." He emphasized the need for collaboration with banking regulators and public input, which he believes the SEC failed to do initially.

The Representative expressed concerns about the implications of SAB 121 on the custody of digital assets, noting the adverse effects on regulated financial institutions and the hindrance of innovation. Flood questioned the SEC's commitment to investor protection, pointing out the contradictions in their actions regarding SAB 121.

Flood's resolution, if successful, aims to rectify what he perceives as the SEC's overreach and pave the way for increased competition and innovation in the digital asset ecosystem and the broader U.S. financial system. He urged the Committee to support the rule and his resolution to hold the SEC accountable for its actions.