Two US lawmakers named and criticized the data encryption financial accounting guidelines outlined by national regulators, saying they put data encryption customers at greater risk of damage.

The guidelines came from the Securities and Exchange Commission and came into effect last April.

The guidelines require financial investment companies that have data encryption for their customers to identify all digital assets beyond their control as debt. They also mentioned that digital assets should be maintained and applied.

However, Congressman Cynthia Lummis and US Congressman Patrick Patrick McHenry argued on March 2 that such guidelines are "very likely" to interfere with digital asset escrow in the supervised physical line, but this is the opposite of what regulators should do.

In a letter to the Federal Reserve Conference system software, the Office of the Superintendent of Monetary Engineering, the Federal Deposit Insurance Corporation and the National Credit Union Management Office, legislators argued that while the relevant staff Financial Accounting announcement (SAB) 121 was intended to respond to the accounting treatment of digital assets, it had adverse effects. They wrote:

If the fund custodian goes bankrupt or enters the bankruptcy administration process, SAB 121 will expose users' property to more risks of damage, which violates SEC's basic task of maintaining customers.

Lawmakers argue that the impact of SAB 121is undoubtedly "preventing millions of Americans from getting reliable escrow allocation of digital assets".

Lawmakers also disagreed with "the depth and breadth of the definition of 'digital assets' in SAB 121and felt that" a more intriguing structural analysis of this asset class must be established, taking into account the good opportunities and risks of digital assets with unique functions. "

Due process, including Lummis, has made public fears to SEC accountants in the past.

Last year, five Republican senators, including Lummis, wrote to SEC on June 16, expressing her concern that the announcement was tantamount to "dressing up as the relevant staff for specific guidance and strict supervision" and not enforcing the APA.

On March 31st, shortly after the announcement, Hester Hester Peirce, the SEC committee, expressed similar anxiety, noting that it was also "a form of change" rather than her doubts about financial accounting being sure of herself. She described the change as:

"this is another major manifestation of the laziness and inefficiency of the Securities and Exchange Commission (Securities and Exchange Commission) on the issue of data encryption."