GAO concludes that SAB 121 is a “rule” under the Congressional Review Act

This week, the Government Accountability Office (GAO) concluded that SEC Staff Accounting Bulletin 121 (SAB 121) represents a “rule” for purposes of the Congressional Review Act (CRA). Under the CRA, rules from federal agencies are subject to a 60-day period during which Congress may disapprove the rule. SAB 121 was issued in March 2022 by staff in the Division of Corporation Finance and the Office of the Chief Accountant to address the accounting for obligations to safeguard crypto assets that an entity holds for platform users. According to the GAO decision, the SEC believed that the staff guidance did not qualify as a rule under the CRA.

In accordance with procedures in the CRA, certain members of Congress have indicated that they plan to initiate proceedings in Congress in hopes of overturning SAB 121. In the interim, however, the guidance in SAB 121 remains applicable.

For more on SAB 121, read our summary, Perspectives on SAB 121 and safeguarding crypto assets.
Expand Expand

Welcome to Viewpoint, the new platform that replaces Inform. Once you have viewed this piece of content, to ensure you can access the content most relevant to you, please confirm your territory.

signin option menu option suggested option contentmouse option displaycontent option contentpage option relatedlink option prevandafter option trending option searchicon option search option feedback option end slide