Republican Senator Cynthia Lummis has written a letter to President Joe Biden, urging him not to veto the recent repeal of the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin-121 (SAB-121) by Congress. Senator Lummis highlighted the controversial nature of SAB-121 and criticized the SEC’s issuance of the guidance, calling it improper. She also pointed out that the regulator revealed the guidance in a questionable manner.
In her letter, Senator Lummis stated that the SEC’s rulemaking process bypassed a vote by the full commission on a contentious policy by inappropriately issuing guidance instead of engaging in notice and comment rulemaking. This allowed the SEC staff to avoid the notice and comment provisions of the Administrative Procedure Act, preventing stakeholders, including banking regulators, from providing input on the policy.
Senator Lummis concluded her letter by mentioning SEC Chair Gary Gensler’s refusal to rescind the rule and emphasized the “clear bipartisan message” sent by Congress through the repeal of SAB-121.
The SEC’s Bulletin, which was slated to come into effect on April 11, 2024, faced significant backlash from both the crypto community and lawmakers. The House of Representatives voted to repeal the SEC’s guidance with a margin of 228 to 182, and the bill was then passed to the Senate. The Senate echoed the House vote and repealed SAB-121 with a decisive 60-38 votes.
President Biden had warned Congress that he would veto the repeal if they voted in favor of it. However, there seems to be a change in the White House’s stance towards cryptocurrencies, possibly influenced by former President Trump’s support for the crypto industry and decentralized technology. The Biden administration has been seeking input from blockchain companies and firms to shape its future crypto policy, potentially indicating a more favorable approach.
The crypto industry is eagerly awaiting President Biden’s decision as the June 3 deadline approaches.