Lawmakers Urge Biden to Reconsider SAB 121 Repeal Veto

Lawmakers from both sides of the aisle are calling on President Joe Biden to reconsider his veto of a legislative measure aimed at repealing the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121 (SAB 121).

Bipartisan Effort Urges Presidential Action on Cryptocurrency Regulation

Senator Cynthia Lummis of Wyoming and Representative Patrick McHenry of North Carolina spearheaded the effort by sending a formal letter to the president. They emphasized the broad bipartisan support for the measure, urging Biden to either sign the resolution into law or collaborate with the SEC to rescind the staff guidance.

SAB 121 has been a contentious issue, primarily due to its requirement for firms holding cryptocurrencies to list them as liabilities on their balance sheets. Critics argue that this could disrupt how banks safeguard their information technology resources.

Bipartisan Support for Cryptocurrency Measure Faces Presidential Hesitation

The measure received bipartisan backing in both the Senate and the House of Representatives, with significant support from Democrats and Republicans alike. However, President Biden has expressed concerns about potential risks to financial regulatory frameworks and the cryptocurrency market, hinting at a possible veto.

The White House highlighted concerns about the potential consequences of reducing the SEC's regulatory authority, citing risks of financial insecurity and market volatility.

H. J. Res 109: Cryptocurrency Resolution Faces Presidential Review

The resolution, known as H. J. Res 109, recently reached the president's desk after facing delays in Congress. This delay has extended the decision-making timeline to June 3, allowing the president additional time for deliberation and potential discussions with the SEC and other stakeholders.

The bipartisan support for repealing SAB 121 underscores concerns about its potential impact on financial markets and regulatory frameworks. President Biden's hesitation to endorse the repeal reflects broader apprehensions about the implications of altering SEC regulations. The extended timeline provides an opportunity for further dialogue and assessment before a final decision is made.