Rep. Wiley Nickel Calls Out SEC's 'Political Football' Crypto Regulation
Summary:
Democratic Representative Wiley Nickel criticizes the US Securities and Exchange Commission (SEC) for turning crypto regulation into a "political football" and argues it's not beneficial to President Biden. Nickel criticizes the agency's attempts to enforce Staff Accounting Bulletin 121, a proposed rule to report crypto holdings as liabilities. He urges SEC Chair, Gary Gensler, to revoke the rule. The House of Representatives recently backed a bill to overturn the rule, but Biden has indicated he would veto such a bill.
Representative Wiley Nickel asserts that the Securities and Exchange Commission's (SEC) apparent aggression towards cryptocurrency is proving to be a stumbling block for President Joe Biden, even going as far as to label the SEC's handling of crypto regulation as "political football." In a communique dated May 15 addressed to Chair of the SEC, Gary Gensler, the Democratic lawmaker alleges that, in attempting to enforce the debated Staff Accounting Bulletin 121 (SAB 121), the commission has strayed from its purpose of investor protection and misused its power.
SAB 121 is a prospective regulation that would necessitate SEC-reporting entities with crypto assets to document those assets as liabilities on their balance statements. Nickel argues that this would impede US banks from holding crypto Exchange-Traded Products on a large scale resulting in higher "concentration risk" as more control is surrendered to non-bank entities. He further claims the SEC's blatant antagonism towards the crypto industry fails to align with President Biden's optimum interests.
"The SEC's politicization of crypto regulation is placing President Biden in a difficult position where he must pick a side in a debate of national concern," stated the representative from North Carolina. Nickel is optimistic about the Senate passing a resolution on May 16 to reject the SEC's proposed rule, although he urges Gensler to retract SAB 121. "I am hopeful this joint, bipartisan resolution will send a clear message: it is time for the SEC to reevaluate its misguided approach towards digital assets," Nickel added.
Over the past week, the House of Representatives approved a bill seeking to overturn SAB 121. If it makes it to President Biden's desk, he has said he would nullify the bill. Nickel expresses concern that SAB 121 could drive a mass of US investors to seek riskier offshore custodial solutions. His sentiment is echoed by many Republicans, including Representative Tom Emmer, who stated SAB 121 would result in US markets being "less equitable, less organized, and less efficient."
The SEC unveiled SAB 121 in March 2022.
Published At
5/16/2024 4:20:52 AM
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