diff --git a/CHANGELOG.md b/CHANGELOG.md
index cacb1f0b6e71..8f15d65c37ab 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -36,6 +36,10 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 ## Unreleased
 
+### Bug Fixes
+
+* (client) [#10226](https://github.com/cosmos/cosmos-sdk/pull/10226) Fix --home flag parsing. 
+
 ## [v0.42.10](https://github.com/cosmos/cosmos-sdk/releases/tag/v0.42.10) - 2021-09-28
 
 ### Improvements
diff --git a/client/cmd.go b/client/cmd.go
index f27aea3691f4..57b404fc48f3 100644
--- a/client/cmd.go
+++ b/client/cmd.go
@@ -245,21 +245,6 @@ func readTxCommandFlags(clientCtx Context, flagSet *pflag.FlagSet) (Context, err
 	return clientCtx, nil
 }
 
-// ReadHomeFlag checks if home flag is changed.
-// If this is a case, we update HomeDir field of Client Context
-/* Discovered a bug with Cory
-./build/simd init andrei --home ./test
-cd test/config there is no client.toml configuration file
-*/
-func ReadHomeFlag(clientCtx Context, cmd *cobra.Command) Context {
-	if cmd.Flags().Changed(flags.FlagHome) {
-		rootDir, _ := cmd.Flags().GetString(flags.FlagHome)
-		clientCtx = clientCtx.WithHomeDir(rootDir)
-	}
-
-	return clientCtx
-}
-
 // GetClientQueryContext returns a Context from a command with fields set based on flags
 // defined in AddQueryFlagsToCmd. An error is returned if any flag query fails.
 //
diff --git a/client/keys/list_test.go b/client/keys/list_test.go
index 5904f74bfdd2..7e3760384c8d 100644
--- a/client/keys/list_test.go
+++ b/client/keys/list_test.go
@@ -57,7 +57,6 @@ func Test_runListCmd(t *testing.T) {
 			cmd.SetArgs([]string{
 				fmt.Sprintf("--%s=%s", flags.FlagHome, tt.kbDir),
 				fmt.Sprintf("--%s=false", flagListNames),
-				fmt.Sprintf("--%s=%s", flags.FlagKeyringBackend, keyring.BackendTest),
 			})
 
 			if err := cmd.ExecuteContext(ctx); (err != nil) != tt.wantErr {
@@ -67,7 +66,6 @@ func Test_runListCmd(t *testing.T) {
 			cmd.SetArgs([]string{
 				fmt.Sprintf("--%s=%s", flags.FlagHome, tt.kbDir),
 				fmt.Sprintf("--%s=true", flagListNames),
-				fmt.Sprintf("--%s=%s", flags.FlagKeyringBackend, keyring.BackendTest),
 			})
 
 			if err := cmd.ExecuteContext(ctx); (err != nil) != tt.wantErr {
diff --git a/simapp/simd/cmd/root.go b/simapp/simd/cmd/root.go
index 5b1cd1ca5eb7..2a393fdc126b 100644
--- a/simapp/simd/cmd/root.go
+++ b/simapp/simd/cmd/root.go
@@ -53,9 +53,16 @@ func NewRootCmd() (*cobra.Command, params.EncodingConfig) {
 		Use:   "simd",
 		Short: "simulation app",
 		PersistentPreRunE: func(cmd *cobra.Command, _ []string) error {
-			initClientCtx = client.ReadHomeFlag(initClientCtx, cmd)
+			// set the default command outputs
+			cmd.SetOut(cmd.OutOrStdout())
+			cmd.SetErr(cmd.ErrOrStderr())
 
-			initClientCtx, err := config.ReadFromClientConfig(initClientCtx)
+			initClientCtx, err := client.ReadPersistentCommandFlags(initClientCtx, cmd.Flags())
+			if err != nil {
+				return err
+			}
+
+			initClientCtx, err = config.ReadFromClientConfig(initClientCtx)
 			if err != nil {
 				return err
 			}
diff --git a/x/genutil/client/cli/init.go b/x/genutil/client/cli/init.go
index f5fda79c69f0..377857ae73ac 100644
--- a/x/genutil/client/cli/init.go
+++ b/x/genutil/client/cli/init.go
@@ -7,7 +7,6 @@ import (
 	"os"
 	"path/filepath"
 
-	"github.com/cosmos/go-bip39"
 	"github.com/pkg/errors"
 	"github.com/spf13/cobra"
 	cfg "github.com/tendermint/tendermint/config"
@@ -23,6 +22,7 @@ import (
 	sdk "github.com/cosmos/cosmos-sdk/types"
 	"github.com/cosmos/cosmos-sdk/types/module"
 	"github.com/cosmos/cosmos-sdk/x/genutil"
+	"github.com/cosmos/go-bip39"
 )
 
 const (
@@ -76,7 +76,6 @@ func InitCmd(mbm module.BasicManager, defaultNodeHome string) *cobra.Command {
 
 			serverCtx := server.GetServerContextFromCmd(cmd)
 			config := serverCtx.Config
-
 			config.SetRoot(clientCtx.HomeDir)
 
 			chainID, _ := cmd.Flags().GetString(flags.FlagChainID)