Providing for Congressional Disapproval of the Rule Submitted By the Securities and Exchange Commission Relating to ``Staff Accounting Bulletin No. 121''--veto Message From the President of the United States

Floor Speech

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Mr. FLOOD. Mr. Speaker, I thank the chairman for his leadership on this issue.

Mr. Speaker, I feel like we should start with a definition of ``custody.'' It is that basic, Mr. Speaker. Banks hold others' assets in custody, and they don't put them on their balance sheet.

This is an example of Mr. Gensler at the SEC using a staff accounting bulletin to keep banks out of digital asset custody. The first time this resolution went through Congress, it received, as the chairman said, bipartisan support from both the House and the Senate, including Majority Leader Schumer. Think about that, Mr. Speaker: Majority Leader Schumer broke with his own party and with his own party's President on this issue.

The reason for that support, and it is really simple, the SEC got its hand caught in the cookie jar. They overstepped in a blatant way that runs contrary to its obligation to protect investors.

What is the SEC doing in banking policy?

Somebody, ask the Federal Reserve. Ask the OCC. Ask the Treasury Department.

Do they think this is right?

Look at the testimony in front of the Financial Services Committee.

SAB 121 is not a political issue. It is simply a bad regulation. No matter what your feelings are about cryptocurrency, the SEC shouldn't be writing bank custody rules, and they definitely shouldn't be overstepping their authority to do it.

Moreover, now on this floor today we hear from the ranking member that there is some private deal with a couple of banks. To the chairman's point, that is not good public policy. That is amateur hour. That is trying to avoid the embarrassment of having the House of Representatives vote like it did on FIT21 where a better than two- thirds majority were in support of this very policy.

Finally, let's be clear. SAB 121 is bad policy that affects the entire banking system, not just one bank or one small group of banks. If the SEC wants to fix this problem themselves, then they shouldn't rescind the bulletin for every bank in America that is publicly traded. One-off agreements do not fix underlying problems with this fatally flawed legislation.

Mr. Speaker, I urge my colleagues to support this measure.

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