Will This Crypto Requirement Be Killed? — SEC Roundup

Welcome to SEC Roundup, a bimonthly video series by former Securities and Exchange Commission senior trial counsels Nick Morgan and Tom Zaccaro, founders of the nonprofit advocacy group Investor Choice Advocates Network.

In an unprecedented move, both houses of Congress have voted on a bipartisan basis to repeal an SEC Staff Accounting Bulletin, SAB 121.

SAB 121 required certain financial institutions that maintain custody of digital assets to hold those assets as liabilities on their balance sheets.

Listen in as Jorge Pesok, chief legal officer of the HBAR Foundation, and John LaBella, partner at AlixPartners, discuss the chilling effects SAB 121 has on banks that might want to hold digital assets.

They also discuss the remarkable nature of the vote from Congress to repeal the bulletin, the likely action President Joe Biden will take by May 28 — as SAB 121 is now on his desk — and the future of SAB 121 with or without a presidential veto.