GAO: SEC Crypto Accounting Rules Should Have Followed Formal Process

U.S. Government Accountability Office (GAO) found SEC's crypto accounting bulletin should have undergone formal rulemaking process.

GAO says bulletin meets definition of a "rule" under Administrative Procedure Act, should have been submitted to Congress.

Industry argues bulletin jeopardizes banks' willingness to custody crypto assets.

SEC declined to comment on GAO report findings.

Congress now has window to invalidate bulletin under Congressional Review Act before December 31.