U.S. Senator Elizabeth Warren supports the SEC's crypto asset accounting standard SAB 121, which is designed to provide accounting guidance for companies dealing with cryptocurrency businesses and clarify how companies should consider crypto-related risks. Warren pointed out that SAB 121 does not require crypto platforms to include customers' cryptocurrencies on their balance sheets, which is inconsistent with the statement of Patrick McHenry, chairman of the House Financial Services Committee. The U.S. Senate voted to overturn the SEC SAB 121 resolution, but the resolution may be vetoed by President Biden. Critics believe that SAB 121 regulations are too strict and hinder companies from holding crypto assets for customers.

Odaily Planet Daily News: U.S. Senator Elizabeth Warren described her support for SEC Staff Accounting Bulletin (SAB) 121 at a recent Senate hearing. Warren said the standard applies to companies that deal with cryptocurrency businesses and is intended to provide accounting guidance.
She believes that SAB 121 "simply clarifies" how companies should consider risks associated with encryption and show these risks in their disclosures. Relevant risks include hacking, theft, and the loss of cryptocurrency when the protection company goes bankrupt.
Warren added that the standard does not require encryption platforms to add customers' cryptocurrencies to their balance sheets-a statement that is inconsistent with the statement of Patrick McHenry, chairman of the House Financial Services Committee, who previously said that the bill "requires financial institutions and companies that protect customers' digital assets to keep these assets on their balance sheets." In addition, this standard does not make the platform the owner of its customers' cryptocurrencies. (CryptoSlate)
Yesterday's news, the U.S. Senate voted 60 to 38 to pass a resolution to overturn SEC SAB 121, but the resolution may be vetoed after it reaches President Biden's desk. It is reported that the U.S. SEC previously issued Staff Accounting Announcement 121 SAB 121, which requires companies to record their crypto assets on their balance sheets, but critics believe that this regulation is too strict and actually prevents major custodians and companies from holding crypto assets for their customers.

U.S. Senate passes resolution to overturn SEC crypto asset accounting standard SAB 121