Congress questions SEC’s approach to digital asset liabilities, asks SEC to allow banks to custody Bitcoin
Congress has taken a firm stance against the SEC’s SAB 121, citing concerns over its conflicting standards and lack of public consultation. The rule’s classification of digital assets as liabilities on banks’ balance sheets has caused confusion and backlash, with lawmakers pushing for its reversal. As the SEC works to navigate these challenges, the debate continues over how best to regulate cryptocurrencies in the financial sector.