President Joe Biden has vetoed a resolution that aimed to overturn the U.S. Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) No. 121. The controversial decision has faced immediate criticism from the cryptocurrency industry.
The Blockchain Association, a crypto advocacy group, expressed disappointment in the administration’s decision, stating that it goes against the bipartisan majority in both Houses of Congress who recognized the harm caused by SAB 121. President Biden argued that challenging the proposed guidelines would compromise the SEC’s authority.
In response to Congress voting to repeal the cryptocurrency accounting guidelines, which require institutions to record crypto holdings as liabilities on their balance sheets, President Biden wrote an official letter on May 31. He stated, “This reversal of the considered judgment of SEC staff in this way risks undercutting the SEC’s broader authorities regarding accounting practices.” He further emphasized that his administration will not support measures that jeopardize the well-being of consumers and investors.
The guidelines were initially scheduled to take effect on April 11, but they faced significant backlash from both the crypto community and lawmakers.
Lawmakers in the House of Representatives voted to repeal the SEC’s guidance with a margin of 228 to 182, and the bill was passed to the Senate. The senators echoed the House vote and decided to repeal SAB-121 by a significant margin of 60-38 votes.
The wider crypto community expressed frustrations with the decision on social media, arguing that it hampers innovation and hinders the industry during a crucial time. Cody Carbone, the Digital Chamber chief policy officer, stated that it is a “slap in the face to innovation and financial freedom.” Ripple CEO Brad Garlinghouse added that the decision is incredibly disappointing from the White House, especially at such a pivotal time.
Source: The White House