Republican Senator Cynthia Lummis has written a letter to President Joe Biden urging him not to veto the recent Congressional repeal of the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin-121 (SAB-121). In the letter, Senator Lummis highlighted the controversial nature of SAB-121 and criticized the SEC’s issuance of the guidance, which she deemed inappropriate. She also raised concerns about the manner in which the regulator disclosed the guidance.
Senator Lummis emphasized that the SEC’s rulemaking process avoided a vote by the full commission on a contentious policy by issuing guidance instead of engaging in notice and comment rulemaking. She pointed out that this approach allowed the SEC staff to bypass the notice and comment provisions of the Administrative Procedure Act, thereby preventing stakeholders, including banking regulators, from providing input on the policy.
In conclusion, Senator Lummis mentioned SEC Chair Gary Gensler’s refusal to revoke the rule and highlighted the bipartisan message conveyed by Congress through the repeal of SAB-121.
The SEC’s highly controversial Bulletin was scheduled to come into effect on April 11, 2024, but faced significant opposition from both the crypto community and lawmakers. The House of Representatives voted in favor of repealing the SEC’s guidance with a majority of 228 to 182, and the bill was subsequently passed to the Senate. The Senate echoed the House’s decision and repealed SAB-121 with a clear majority of 60-38 votes.
President Biden had warned Congress that he would veto the repeal of the controversial Staff Accounting Bulletin using his executive powers. However, there have been indications of a shift in the Biden administration’s stance towards cryptocurrencies, potentially raising hopes that he may not veto the repeal. The White House has been engaging with blockchain companies and firms to seek input for the administration’s future crypto policy, possibly in response to former President Trump’s expressed support for the crypto industry and decentralized technology.
As the June 3 deadline approaches, the crypto industry anxiously awaits President Biden’s decision on whether to veto the repeal of this contentious measure.