Providing for Congressional Disapproval of the Rule Submitted By the Securities and Exchange Commission Relating to ``Staff Accounting Bulletin No.

Floor Speech

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Mr. HILL. Mr. Speaker, I thank Chairman McHenry and the gentleman from Nebraska (Mr. Flood) for this excellent work in this Congressional Review Act resolution to roll back the SEC's failure in their Staff Accounting Bulletin 121.

It would reshape the business of custody in this country. This is not just about crypto. This is a sweeping rule that the SEC has implemented without following the Administrative Procedures Act. The GAO says it is a rule. Well, if it is a rule, it needs to go through the Administrative Procedures Act and have a comment period and get people involved because, as Ranking Member Waters noted, they did not consult with the banking regulators, who have the primary role of supervising custody in this country.

A custodian is someone who holds your assets for you, whether it is shares of a stock or acres of forest land or a rental house or 10 bitcoin. Holding reserves against the assets in custody is not standard financial services practice.

This staff accounting bulletin is misguided. It requires that money be set aside for that category of assets of digital assets in custody. It is part of a broader attack by the Biden administration to treat digital assets differently from all other assets.

That doesn't make any sense to House Republicans. Under Mr. McHenry's leadership and Mr. Thompson's leadership of the Ag Committee, we have a fit-for-purpose approach that, in fact, directs the SEC and the CFTC how to handle digital assets.

Unfortunately, this accounting bulletin is in the wrong direction. That is why we have the Congressional Review Act. That is why we are using Article I authority under the Constitution to say this is the wrong direction and that we will all come to this House floor and say it should be repealed and sent back.

Mr. Speaker, I would remind my friends on the other side of the aisle, senior Biden official Vice Chairman Barr of the fed, Acting Comptroller Hsu all testified before our committee that they were not consulted by the SEC about this staff accounting bulletin. It is a significant change. It is a rule. It should have gone through the Administrative Procedures Act and be out for public comment.

Mr. Speaker, that is why I thank the gentleman from Nebraska (Mr. Flood) for leading the charge on this important resolution, and I urge adoption.

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