President Joe Biden has vetoed a resolution that aimed to overturn the U.S. Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin (SAB) No. 121, a decision that has sparked criticism from the cryptocurrency industry.
The Blockchain Association, a crypto advocacy group, expressed disappointment in a May 31 post, stating that the administration’s decision disregarded the bipartisan majorities in both Houses of Congress who recognized the negative impact of SAB 121. President Biden argued that challenging the proposed guidelines would undermine the SEC’s authority.
In an official letter on May 31, President Biden defended the SEC’s decision, stating, “This reversal of the SEC staff’s considered judgment risks undermining the SEC’s broader authorities regarding accounting practices.” This response came after Congress voted to repeal the accounting guidelines, which required institutions holding crypto assets to record them as liabilities on their balance sheets.
President Biden emphasized that his administration will not support measures that jeopardize the well-being of consumers and investors.
The guidelines were originally scheduled to take effect on April 11 but faced significant backlash from both the crypto community and lawmakers.
In the House of Representatives, lawmakers voted 228 to 182 to repeal the SEC’s guidance and passed the bill to the Senate. The Senate echoed the House vote, repealing SAB-121 with a significant margin of 60-38 votes.
The wider crypto community expressed frustration on social media, arguing that the decision stifles innovation and hampers the industry at a critical time. Cody Carbone, the Digital Chamber’s chief policy officer, stated in a May 31 post that the decision was a “slap in the face to innovation and financial freedom.” Ripple CEO Brad Garlinghouse added that the move was incredibly disappointing and came at a pivotal time for the industry.
Source: The White House