Tom Emmer strongly criticized SEC Chair Gary Gensler for what he termed as “illegal rulemaking” regarding Staff Accounting Bulletin (SAB) 121, asserting that Gensler exceeded the SEC’s authority. Emmer’s remarks came during a House Committee meeting where he called for the repeal of SAB 121, highlighting Gensler’s alleged bias against digital assets and the negative impact of the rule on the crypto market.
Emmer specifically pointed out the risks introduced by SAB 121, which requires digital asset custodians to report liabilities and corresponding assets for all custodied cryptocurrencies. He argued that this rule creates unnecessary concentration risk in the crypto ecosystem and results in an unfair and disorderly market. Emmer also raised concerns about the lack of bank custodianship for recently approved Spot Bitcoin ETFs, attributing it to the effects of SAB 121.
The House Financial Services Committee approved a resolution to repeal SAB 121 during the meeting. Introduced in response to concerns raised by the Government Accountability Office, the resolution aims to address the lack of proper regulatory procedures followed in implementing SAB 121. While proponents argue that SAB 121 provides essential consumer protection against fraud, opponents like Emmer assert that it stifles innovation and unfairly burdens the crypto market.