SEC Faces Backlash Over Crypto Accounting Rules and Oversight Approach

• SEC faces growing calls from lawmakers to ease crypto oversight, including appeal of Staff Accounting Bill that restricts banks from holding digital assets • Attorneys general from 11 states filed brief challenging SEC's authority over crypto firms, arguing it exceeds SEC's powers • GAO report criticizes how SEC enacted restrictions without conferring with other regulators or submitting report to Congress • Crypto developers worry about building new technologies due to uncertain regulations and threat of SEC lawsuits • SEC Commissioner says regulator stuck in "enforcement-only mode," clearer rules could let developers focus on building