SEC Commissioner Hester Peirce condemns SAB 121 and criticizes her agency’s regulatory approach

During a two-day “SEC Speaks” event hosted by the Practicing Law Institute, U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce denounced Staff Accounting Bulletin 121, also known as SAB 121, and criticized her agency’s regulatory approach. SAB 121, released in March 2022, requires companies that host cryptocurrencies to record customer cryptocurrency holdings as a liability on their balance sheets. The announcement has sparked controversy over the past year as the crypto industry fears it could prevent banks from custody of digital assets. Hester Peirce also said that when individuals and entities approach the SEC for feedback, concerns and questions, they often encounter a "silent response." "The root of the problem is that the commission doesn't encourage staff to offer anything more than a shrug, a silence, a slow walk, a sigh," she said. Changes have occurred.”