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.
This controversial decision has drawn immediate criticism from the cryptocurrency industry.
“We’re disappointed that the admin chose to overrule bipartisan majorities in both Houses of Congress who recognized the harm created by SAB 121,” stated the Blockchain Association in a May 31 X post, following Biden’s argument that opposing the guidelines would undermine the SEC’s authority.
“This reversal of the considered judgment of SEC staff in this way risks undercutting the SEC’s broader authorities regarding accounting practices,” Biden wrote in an official May 31 letter.
The letter was in response to Congress’s vote to repeal the cryptocurrency accounting guidelines, which require institutions that custody crypto assets to record these holdings as liabilities on their balance sheets.
“My Administration will not support measures that jeopardize the well-being of consumers and investors,” Biden added.
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Lawmakers in the House of Representatives voted to repeal the SEC’s guidance by a margin of 228 to 182, subsequently passing the bill to the Senate.
Senators echoed the House’s sentiment, voting to repeal SAB-121 with a significant margin of 60-38 votes.
The broader crypto community expressed frustration on social media, arguing that the decision stifles innovation and hinders the industry’s progress during a critical time.
“This is a slap in the face to innovation and financial freedom,” stated Digital Chamber chief policy officer Cody Carbone in a May 31 X post.
“To say that this is incredibly disappointing from this White House – at an incredibly pivotal time – is an understatement,” Ripple CEO Brad Garlinghouse added.
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