Foreign media: The U.S. House of Representatives' budget allocation may prevent the SEC from implementing SAB 121

ChainCatcher news, according to Cryptoslate, the upcoming House appropriations budget may prevent the U.S. SEC from implementing its controversial Staff Accounting Bulletin 121 (SAB 121).

FOX Business reporter Eleanor Terrett stated that the bill would prohibit the SEC from using appropriations to enforce the rule. Appropriations allow agencies to incur debt and receive payments from the U.S. Treasury for specified purposes. A policy rider in the budget stipulates that the U.S. SEC is prohibited from implementing or enforcing Accounting Bulletin No. 121, which imposes harmful requirements on digital assets.

Terrett noted that Democrats supported an earlier resolution, H.J. Res. 109, with the same goal, which means the Senate may retain this rider in the budget. The bill aims to provide a total of $2 billion in funding for the SEC by 2025, rather than the $2.59 billion requested by SEC Chairman Gary Gensler.

It remains unclear whether the budget proposal can pass in its current form. The Republican-majority House is likely to pass the appropriations bill at the hearing on June 5. However, the Democrat and independent-majority Senate will need to negotiate their own appropriations bill with that of the House.