Biden's Office Backs Legislation for Banks to Custody Crypto

This resolution aims to enable highly regulated financial firms to serve as custodians for Bitcoin and other digital assets.

It seeks to achieve this by overturning the SEC’s Staff Accounting Bulletin (SAB) No. 121. Let’s explore more about this important measure to let banks custody crypto.

Proposed Bill to Allow Banks to Custody Cryptocurrencies

Introduced under the Congressional Review Act (CRA), H.J. Res. 109 directly challenges SAB 121. This regulation currently imposes strict limitations on the ability of financial institutions to hold digital assets.

The SEC introduced SAB 121 to safeguard the financial system and investors from potential risks associated with the custody of digital currencies. These currencies are known for their volatility and security concerns.

The bipartisan resolution, if passed, would remove these existing roadblocks. This change would allow banks and other financial entities, already under stringent regulatory scrutiny, to serve as custodians for cryptocurrencies. This move could catalyze the mainstream acceptance and integration of cryptocurrencies into the traditional financial system.

US Congressman Patrick McHenry, Chairman of the House Financial Services Committee, expressed support for overturning the SEC’s SAB 121, stating, “Staff Accounting Bulletin, or SAB, 121 is one of the most glaring examples of the regulatory overreach that has defined Gary Gensler’s tenure at the SEC. Through SAB 121, the Commission is trying to dictate how financial institutions and firms safeguard Americans’ digital assets under the guise of so-called staff guidance.”

On the other hand, US Congressman French Hill also spoke out in support of H.J. Res. 109, saying that “Holding reserves against the assets held in custody is NOT standard financial services practice. The Biden Admin’s SAB 121 is misguided and should be nullified.”



The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.


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