President Joe Biden has vetoed a resolution aiming to overturn the U.S. Securities and Exchange Commission's (SEC) Staff Accounting Bulletin (SAB) No. 121.
President Joe Biden has vetoed a resolution aiming to overturn the U.S. Securities and Exchange Commission's (SEC) Staff Accounting Bulletin (SAB) No. 121, a move that has drawn immediate criticism from the cryptocurrency industry.
In a May 31 letter, President Biden defended his decision, arguing that overturning the SEC's guidelines would undermine the commission's authority over accounting practices. "This reversal of the considered judgment of SEC staff in this way risks undercutting the SEC’s broader authorities regarding accounting practices," Biden wrote. He further emphasized that his administration would not support measures that could jeopardize the well-being of consumers and investors.
SAB 121 mandates that institutions holding crypto assets must record these holdings as liabilities on their balance sheets, a guideline that has been contentious since its introduction. The SEC’s guidelines, which were scheduled to take effect on April 11, faced substantial pushback from both the crypto community and lawmakers. The House of Representatives had voted 228 to 182 to repeal the guidelines, and the Senate followed suit with a 60 to 38 vote in favor of repeal.
The crypto advocacy group, the Blockchain Association, expressed disappointment with Biden's veto, highlighting that bipartisan majorities in both Houses of Congress had recognized the harm posed by SAB 121. "We’re disappointed that the admin chose to overrule bipartisan majorities in both Houses of Congress who recognized the harm created by SAB 121," the group stated in a May 31 post on X. Ripple CEO Brad Garlinghouse echoed these sentiments, stating, "To say that this is incredibly disappointing from this White House - at an incredibly pivotal time - is an understatement."
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