A group of U.S. legislators from both political parties is aiming to reverse an accounting rule from the Securities and Exchange Commission (SEC) that imposes limitations on crypto custodians. Representative Cynthia Lummis, a Republican from Wyoming, and fellow members of Congress. Wiley Nickel, a Democrat from North Carolina, and Mike Flood, a Republican from Nebraska, co-sponsored a resolution in both the Senate and the House aimed at revoking the SEC Staff Accounting Bill 121. According to a statement from Lummis, the Government Accountability Office determined that SAB 121 qualifies as a rule under the scope of the Congressional Review Act. Lummis stated that because SAB 121 was released without seeking input from Congress or the Government Accountability Office, it lacks the authority to be enforced. She continued by stating that if the rule that was not being adhered to were to be enforced, it would “essentially permit the SEC to regulate organizations that Congress has not granted them permission to oversee.” Flood charged the SEC with excessive intervention on his website, claiming they exceeded the limits of an accounting directive. “Nickel commented in a statement that Gary Gensler alongside the Securities and Exchange Commission are exceeding their power. He mentioned that the situation necessitates Congress’s intervention regarding SAB 121. SAB 121, which was initiated in March 2022 and became effective in April of the same year, mandates enterprises that hold cryptocurrencies to record both a liability and the related assets on the company’s financial statements.” The American Bankers Association, as noted on Flood’s website, has expressed concern that SAB 121 introduces a major change to the traditional accounting methods for custodial assets, potentially jeopardizing the banking sector’s capacity to securely maintain digital assets for their clients.