US President Joe Biden vetoes SAB 121 repeal

US President Joe Biden has vetoed a resolution that would have rescinded the US Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin (SAB) No. 121. The controversial decision immediately sparked criticism from the cryptocurrency industry.

“We are disappointed that the Administrator chose to ignore the bipartisan majorities in both houses of Congress that recognized the harm created by SAB 121,” cryptocurrency advocacy group Blockchain Association said in a May 31 article. after Biden argued that challenging the proposed guidelines. compromise the authority of the SEC.

“This reversal of the SEC staff’s considered judgment risks undermining the SEC’s broader authority over accounting practices,” Bi wrote in a May 31 formal letter in response to Congress’s vote to repeal the accounting guidance on cryptocurrencies that require institutions to hold crypto assets. to record crypto assets on the liabilities side of their balance sheets.

“My administration will not support measures that jeopardize the well-being of consumers and investors,” Biden added.

Letter from Joe Biden addressed to the House of Representatives. Source: The White House

The guidelines were set to take effect on April 11, but received considerable backlash from the crypto community and lawmakers.

Lawmakers in the House of Representatives voted to repeal the SEC guidelines by a margin of 228-182 and passed the bill in the Senate. Once there, senators echoed the House vote and chose to repeal SAB-121 by a significant margin, 60-38.

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The broader crypto community has expressed its frustrations with the decision on social media, arguing that it only stifles innovation and hampers the industry at a critical time.

“This is a slap in the face to innovation and financial freedom,” Digital Chamber policy director Cody Carbone said in a May 31 X-article.

“To say this is incredibly disappointing from the White House – at an incredibly crucial time – is an understatement,” added Ripple CEO Brad Garlinghouse.

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