President Joe Biden has vetoed a resolution that would have overruled the U.S. Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) No. 121. This controversial decision has caused him immediate criticism from the cryptocurrency industry and bipartisan lawmakers.
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The resolution was going to challenge the SEC’s guidelines on how banks should account for cryptocurrency assets. Crypto advocacy group, Blockchain Association, shared their disappointment. They argued that the administration ignored bipartisan support in both Houses of Congress for repealing SAB 121.
Biden Doesn’t Want To Reverse SEC’s Judgment
Biden’s official response to the resolution was firm. He wrote to Congress, explaining his veto. In his letter, Biden stated that repealing SAB 121 would undermine the SEC’s authority over accounting practices. He emphasized that the SEC’s judgment should not be reversed, as it would weaken their broader regulatory powers.
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This reversal of the considered judgment of SEC staff in this way risks undercutting the SEC’s broader authorities regarding accounting practices. My Administration will not support measures that jeopardize the well-being of consumers and investors.
Biden
The President’s letter stated that SAB 121 reflects the considered technical views of the SEC staff about the accounting obligations of firms that hold crypto. Biden argued that invoking the Congressional Review Act with this Republican-led resolution would improperly limit the SEC’s ability to create necessary guardrails and address future issues.
U.S. House Votes To Repel SEC Guidance
Lawmakers in the House of Representatives had voted to repeal the SEC’s guidance by a margin of 228 to 182. The bill then passed to the Senate, where senators also voted to repeal SAB-121 by a margin of 60-38 votes. Despite this strong legislative support, Biden’s veto overruled their decision, leading to frustration among many.
The wider crypto community expressed displeasure on social media and argued that Biden’s veto only stifles innovation and hinders industry growth at a critical time. They believe that the President’s decision is a step backward for the United States’ leadership in the global financial system.
Meanwhile, the presumptive Republican nominee for November’s election, Donald Trump, has rallied behind the cryptocurrency industry and promised to support it once re-elected. Unlike Biden, Trump believes America should be at the forefront of the blockchain revolution. During this week, Trump was convicted of a felony on thirty-four counts.
Cryptopolitan reporting by Jai Hamid
