Senator Cynthia Lummis, U.S. Senator for Wyoming | Official U.S. Senate headshot
Senator Cynthia Lummis, U.S. Senator for Wyoming | Official U.S. Senate headshot
WASHINGTON, D.C. — U.S. Senator Cynthia Lummis (R-WY) and Representative Patrick McHenry (R-NC) have led a letter to President Joe Biden, urging him to reconsider his threat to veto the Staff Accounting Bulletin (SAB) 121 Congressional Review Act (CRA). The CRA passed both the Senate and House with significant bipartisan support.
“Given the overwhelming bipartisan votes, we urge you to sign H.J. Res. 109 into law or work with the SEC to rescind the staff guidance,” said Lummis and the representatives. “Rescinding SAB 121 is well within the SEC’s authority and there is ample precedent for revisiting a staff accounting bulletin. In fact, most staff accounting bulletins over the last three decades have been revisions and recessions of prior guidance.”
The CRA resolution aims to protect essential custody services and consumers from increased bankruptcy risk. It garnered strong bipartisan backing in both chambers of Congress.
Reps. French Hill (R-AR), Andy Barr (R-KY), Tom Emmer (R-MN), Mike Flood (R-NE), Ritchie Torres (D-NY), Wiley Nickel (D-NC), and Dan Meuser (R-PA) joined Lummis and McHenry in sending the letter.
Background:
On November 15, 2023, Senator Lummis, Representative Wiley Nickel (D-NC), and Representative Mike Flood (R-NE) sent a letter alongside Senator Kirsten Gillibrand (D-NY) and Representatives Patrick McHenry (R-NC), French Hill (R-AR), and Ritchie Torres (D-NY) to various prudential regulators urging them to clarify that SAB 121 is not enforceable after the Government Accountability Office found it qualifies as a rule under the Congressional Review Act.
On February 1, 2024, Senator Lummis, along with Representatives Nickel and Flood, introduced a bipartisan Congressional Review Act resolution to overturn SAB 121 issued by the U.S. Securities and Exchange Commission.
The House passed the CRA resolution last week by a vote of 228–182, while the Senate approved it by a vote of 60–38. This marks the first instance where both chambers of Congress have passed standalone crypto legislation.
Read the full letter here.
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