Biden Vetoes Bill Overturning SEC Crypto Accounting Standard SAB 121 – Here’s What That Means
President Joe Biden has vetoed a resolution aimed at overturning the U.S. Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin (SAB) No. 121.
Biden argued that challenging the proposed guidelines would compromise the SEC’s authority, leading him to veto the resolution.
In an official letter on May 31, Biden explained his decision, stating that reversing the SEC staff’s considered judgment in this manner could undermine the SEC’s broader authorities regarding 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.
“My Administration will not support measures that jeopardize the well-being of consumers and investors.”
The controversial accounting guidelines, set to take effect on April 11, required institutions that custody crypto assets to record crypto holdings as liabilities on their balance sheets.
However, they faced significant backlash from the crypto community and lawmakers.
Lawmakers in the House of Representatives voted to repeal the SEC’s guidance, passing the bill to the Senate.
The Senate echoed the House vote and elected to repeal SAB 121 by a margin of 60-38 votes.
The decision to veto the bill has drawn frustration from the wider crypto community.
Many argue that it stifles innovation and hampers the industry during a critical time.
The Blockchain Association, a crypto advocacy group, expressed disappointment in a post on May 31.
They stated that the administration’s choice to overrule bipartisan majorities in both houses of Congress, who recognized the harm caused by SAB 121, was disheartening.
Likewise, Cody Carbone, the Digital Chamber’s chief policy officer, stated in a
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