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US House Appropriations Budget Aims to Stop SEC from Implementing SAB 121

US House Appropriations Budget Aims to Stop SEC from Implementing SAB 121

CointimeCointime2024/06/05 00:04
By:Cointime

The upcoming House appropriations bill may prevent the Securities and Exchange Commission (SEC) from implementing its controversial Staff Accounting Bulletin No. 121 (SAB 121). FOX Business reporter Eleanor Terrett, who reported on the news on June 4th, said that the bill would prohibit the SEC from using appropriations to enforce the rule. Appropriations allow institutions to assume debt and receive payments from the US Treasury for designated purposes.

A policy rider in the budget reads: "Prohibition on the Securities and Exchange Commission implementing or enforcing Accounting Bulletin No. 121," which implemented harmful digital asset requirements. It is unclear whether the budget will pass in its current form. The Republican-controlled House is likely to pass the appropriations bill at the hearing on June 5th. However, the Democratic and Independent-controlled Senate will need to negotiate their own appropriations bill with the House bill.

Terrett said that Democrats support an earlier resolution, HJ Res. 109, which has the same goal, meaning that the Senate may keep the rider in the budget. The bill aims to provide a total of $2 billion in funding for the SEC by 2025, instead of the $2.59 billion requested by SEC Chairman Gary Gensler.

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