Clarksville Times

The U.S. House of Representatives passed Representative Mike Flood’s bipartisan H.J.Res. 109 on May 8, 2024. The resolution aims to overturn the Securities and Exchange Commission's (SEC) SAB 121 under the Congressional Review Act (CRA). By nullifying SAB 121, the bipartisan effort seeks to eliminate obstacles preventing highly regulated financial institutions from acting as custodians of digital assets.

Chairman McHenry (NC-10) criticized SAB 121, stating it represents regulatory overreach at the SEC. The ruling requires financial institutions to include customers’ digital assets on their balance sheets, imposing significant costs. Flood’s bipartisan resolution, H.J.Res. 109, intends to rectify this situation and allow consumers to securely hold digital assets through regulated financial entities.

Congressman Mike Flood expressed concerns about the Biden administration's approach to rulemaking processes, citing SAB 121 as an example of bypassing proper procedures. Flood urged the Senate to follow the House's lead in repealing SAB 121 to protect consumer interests.