House Appropriation budget aims to prevent SEC from implementing SAB 121

House Appropriation budget seeks to prevent SEC from implementing SAB 121, a controversial rule on digital asset requirements. The budget includes a provision that prohibits the use of appropriated funds for implementing or enforcing the rule. The budget is currently in the House, with a Republican majority, and is expected to pass. However, it will still need to be negotiated with the Senate, which has a Democratic and Independent majority. There is a possibility that the Senate may leave the provision in the budget, as there is Democratic support for a previous resolution with the same goal. The budget allocates $2 billion in funding for the SEC in 2025, lower than the $2.59 billion requested by SEC Chair Gary Gensler. SEC Commissioner Mark Uyeda supports withdrawing SAB 121 and criticizes the SEC’s bypassing of rulemaking procedures. Fellow SEC Commissioner Hester Peirce also expressed criticism of the procedural shortcomings of the rule. Previous attempts to overturn SAB 121 through a resolution were vetoed by President Biden, citing concerns about consumer and investor protection.