Biden vetoes SAB 121 bill: will not support measures that harm consumers

Author: Ciaran Lyons, CoinTelegraph; Compiler: Baishui, Golden Finance

US President Joe Biden vetoed Staff Accounting Bulletin (SAB) No. 121. The controversial decision was immediately criticized by the cryptocurrency industry.

“We are disappointed that the administration chose to overturn the opinions of bipartisan majorities in both houses of Congress, who recognized the harm caused by SAB 121,”cryptocurrency advocacy group Blockchain Association said in a May 31 X post after Biden argued that challenging the proposed guidelines would undermine the authority of the SEC.

“Overriding the considered judgment of the SEC staff in this manner risks undermining the SEC’s broader authority over accounting practices,” Biden wrote in an official letter on May 31 in response to Congress’ vote to repeal cryptocurrency accounting standards that required institutions that custody crypto assets to record crypto holdings as liabilities on their balance sheets.

“My administration will not support measures that jeopardize the well-being of consumers and investors,” Biden added.

Joe Biden’s letter to the House of Representatives. Source: The White House

The guidance was originally scheduled to take effect on April 11, but it was strongly opposed by the crypto community and lawmakers.

Lawmakers and the Crypto Community Take a Clear Stand

Members of the House of Representatives voted 228 to 182 to repeal the SEC’s guidance and send the bill to the Senate.

Members of the Senate echoed the House’s vote, passing the repeal of SAB-121 by a significant margin of 60 to 38.

Most of the crypto community took to social media to express their displeasure with the decision, which they believe will only stifle innovation and hold the industry back at a critical time.

“This is a gut punch to innovation and financial freedom,” said Cody Carbone, chief policy officer at the Chamber of Digital Commerce, in a May 31 X post.

“To say that this decision by the White House, at a critical time, is extremely disappointing, is an understatement,” added Ripple CEO Brad Garlinghouse.