According to Joe Biden, the SEC with new regulations to curb crypto risks. The political opposition sees it differently and demands that Gary Gensler lift these regulations.

More than 40 Republican politicians are demanding the American stock market watchdog SEC's lifting of Staff Accounting Bulletin No. 121 (SAB 121).

The rule, introduced by the SEC in 2022, requires public companies to include the cryptocurrencies they hold as liabilities on their corporate balance sheets.

In a letter dated September 23 Republicans claim that SAB 121 undermines cryptocurrency custody rules, weakens consumer protection policies and stifles financial innovation. Moreover, they argue, the "catastrophic" regulation was introduced without consultation with "careful regulators" and deviates from previous standards.

SAB 121 was originally introduced as a guideline for employees. From a evaluation from the Government Accountability Office (GAO), however, revealed that the SEC should have had the rule approved by Congress first. Therefore, according to the Republican delegates, SAB 121 is "illegal" anyway.

"The dissolution of SAB 121 is the only appropriate action and is within the powers of the SEC," their claim reads.

As early as mid-year, politicians demanded the repeal but were stopped by U.S. President Joe Biden. "SAB 121 was enacted in response to proven technological, legal and regulatory risks that have caused significant losses to consumers," the White House said in a May 8 statement.

Whether the delegates will be successful now remains to be seen. However, if Donald Trump were to become president again, there would likely be a change.

The Republican wants to fire current SEC Chairman Gary Gensler and end the authority's restrictive crypto regulations.