The U.S. House group reached a resolution opposing the SEC's cryptocurrency custody guidelines

ChainCatcher news, according to Cointelegraph, the U.S. House Financial Services Committee (HSFC) voted in favor of a resolution aimed at overturning the U.S. Securities and Exchange Commission's guidance (SAB 121) that prevents banks from participating in cryptocurrency custody. This guidance was introduced in March 2022 and requires institutions that custody crypto assets to record the held crypto assets as liabilities on their balance sheets.

Republican Congressman Mike Flood, who proposed the resolution, stated that SAB 121 is unfair to banks looking to custody cryptocurrencies, as custodial assets "are always considered off-balance-sheet assets," which includes securities and digital assets like Bitcoin. Flood added, "If a bank were to custody digital assets under the parameters of SAB 121, the treatment on the balance sheet would affect its other regulatory obligations, such as capital and liquidity requirements."

It is worth noting that before SAB 121 can be overturned, the resolution still needs to pass a full vote in both the House and the Senate.