Uyeda is currently serving as acting Chair of the SEC and believes that SAB 121 should be eliminated.

Mark Uyeda has recently taken on the role of acting Chair of the Securities and Exchange Commission (SEC) amidst a series of announcements from the White House. Although Paul Atkins was previously chosen by the President as the full-time Chair, pending confirmation, Uyeda’s appointment is currently in effect. Known for their involvement in digital assets, Commissioner Hester Peirce, often dubbed ‘Crypto mom,’ has been a prominent figure in this field. However, Commissioner Uyeda has presented bold opinions on issues relating to digital assets during his tenure coinciding with the tenure of Gary Gensler.

One of the significant issues raised during Gensler’s time was the controversial staff accounting bulletin SAB 121, which effectively restricted banks from offering digital asset custody services, including for tokenized securities. Despite the SEC granting some exceptions to SAB 121 lately, banks are still required to seek approval for every engagement, leading to what has been described as a cumbersome process, hindering client transactions.

The Government Accountability Office (GAO) conducted a review of SAB 121 and recommended a Congressional review. Both the House and Senate voted in favor of overturning the bulletin, but President Biden opted to veto the decision, resulting in the maintenance of the existing regulations.

Commissioner Uyeda has been vocal about his stance on SAB 121, advocating for its withdrawal. Following President Biden’s veto in June 2024, Uyeda expressed his discontent with the use of regulatory edicts, bypassing the standard rulemaking processes under the Administrative Procedure Act, thereby avoiding judicial oversight. This, according to Uyeda, undermines the system of checks and balances in place to prevent an overreaching administrative state.

Uyeda reiterated his position on SAB 121 during an accounting conference in December, emphasizing the lack of a formal commission vote on the matter. Citing the profound impact of SAB 121, Uyeda stressed the necessity for its withdrawal, as reported by the American Bankers Association (ABA).

In a similar vein, Commissioner Pham has assumed the role of acting Chair of the Commodity Futures Trading Commission (CFTC), driving positive changes in the realm of digital assets. Pham has overseen the progress of the CFTC advisory subcommittee’s proposals to utilize distributed ledger technology (DLT) and tokenized collateral as margins without the need for rule changes, making strides in enhancing the regulatory environment for digital assets.