Search within this section
Select a section below and enter your search term, or to search all click News
Favorited Content
GAO concludes that SAB 121 is a “rule” under the Congressional Review Act
Publication date: 02 Nov 2023
us News
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.
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.
PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
Link copied
