President Biden's veto in Washington D.C. of the Congressional resolution to overturn SEC’s SAB 121 reaffirms his commitment to maintaining rigorous financial regulations for the crypto industry.
President Joe Biden has vetoed a Congressional resolution that aimed to overturn the SEC’s Staff Accounting Bulletin No. 121 (SAB 121), reaffirming the Administration’s commitment to rigorous financial regulations. This resolution, which was passed by both the House and Senate on May 16, sought to reverse the SEC's rule requiring financial institutions to report customers’ digital assets.
Critics of SAB 121, including Senator Cynthia Lummis, argue that the rule imposes significant operational and financial burdens on cryptocurrency firms. They also claim it risks consumer assets in bankruptcy scenarios by placing them on institutional balance sheets. Despite strong opposition from various crypto industry leaders and some lawmakers, Biden's veto maintains the SEC's authority over crypto-related accounting practices.
In his veto statement, President Biden emphasized that his Administration would not support measures that could potentially harm consumers and investors. He expressed a willingness to collaborate with Congress on crafting appropriate legislation for the digital asset market, but he firmly rejected any actions that might undermine the SEC’s regulatory framework.
