US President Joe Biden Vetoes Repeal of SAB 121

United States President Joe Biden has vetoed a resolution aimed at overturning the U.S. Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) No. 121. The controversial decision swiftly attracted criticism from the cryptocurrency sector.

“We’re disappointed that the admin chose to overrule bipartisan majorities in both Houses of Congress who recognised the harm created by SAB 121,” stated the crypto advocacy group, the Blockchain Association, in a May 31 post on X. They argued that contesting the proposed guidelines would undermine the SEC’s authority.

“This reversal of the considered judgement of SEC staff in this way risks undercutting the SEC’s broader authorities regarding accounting practices,” Biden wrote in an official letter on May 31, responding to Congress’s vote to repeal the cryptocurrency accounting guidelines. These guidelines require institutions that hold crypto assets to record those holdings as liabilities on their balance sheets.

“My Administration will not support measures that jeopardise the well-being of consumers and investors,” Biden stated.

The guidelines were scheduled to be implemented on April 11 but faced significant opposition from both the cryptocurrency community and lawmakers.

Lawmakers in the House of Representatives voted to overturn the SEC’s guidance with a margin of 228 to 182, sending the bill to the Senate.

In the Senate, legislators mirrored the House’s decision, voting to repeal SAB-121 with a notable margin of 60 to 38.

The broader cryptocurrency community voiced their frustrations on social media, arguing that the decision stifles innovation and hampers the industry at a crucial moment.

“This is a slap in the face to innovation and financial freedom,” remarked Digital Chamber chief policy officer Cody Carbone in a May 31 post on X.

Ripple CEO Brad Garlinghouse added, “to say that this is incredibly disappointing from this white house – at an incredibly pivotal time – is an understatement.”