According to reports, US Republicans who support cryptocurrencies are preparing to fiercely criticize the US SEC this week and demand that the agency revoke its current guidance. They believe that this guidance hinders banks from providing cryptocurrency custody services.

On Wednesday, the US House of Representatives will vote on a joint resolution proposed by Congressman Mike Flood, which aims to reject Staff Accounting Bulletin No. 121 (SAB 121) to Congress. The Senate also proposed a complementary resolution.

SAB 121 outlines the SEC staff's views on the risks that cryptocurrency custodians should consider and lists the relevant disclosure requirements under federal securities laws.

Although the SEC positions SAB as guidance rather than formal rules, Flood stated on Monday that SAB 121 represents both a policy change and a controversial change. The SEC also bypassed the traditional SAB development process, which usually involves consultation with federal banking agencies. (Decrypt)