On the recordMay 8, 2024
I thank the chairman for yielding. Mr. Speaker, I rise today in strong support of H.J. Res. 109. I don't want to be redundant on some of these points, but the SEC's Staff Accounting Bulletin 121 is a radical departure from how custodians account for all other assets. By requiring custodians to treat digital assets as both an asset and a liability on their balance sheets, SAB 121 makes it nearly impossible for banks to provide custody services for digital assets due to the prudential requirements that it would trigger. Innovations like the tokenization of assets have the potential to dramatically improve our financial infrastructure, and tokenization will allow new innovations and traditionally illiquid assets to become available to more people more efficiently, like commercial bank deposits, government corporate bonds, money market fund shares, real estate, gold, and other commodities. However, for tokenization to take hold, it is important for regulated financial institutions to be custodians in order to identify the entitlement holder and to mitigate any single point of failure in the record of the ownership. Mr. Speaker, this misguided action from the SEC should be struck down, and I urge my colleagues to vote ``yes'' for this resolution.
