President Joe Biden must soon decide whether to veto or sign a resolution that overturns the U.S. Securities and Exchange Commission’s (SEC) controversial Staff Accounting Bulletin 121 (SAB 121). The resolution passed both the House of Representatives and the Senate despite a prior White House veto threat.
Veto Deadline Approaching
The resolution, which seeks to nullify SAB 121, has reached President Biden’s desk. The Chamber of Digital Commerce announced that Congress has sent the resolution to the President, and he has until June 3 to make a decision. Cody Carbone, the Chamber’s Chief Policy Officer, explained on social media platform X that Biden’s options include vetoing the resolution, signing it to nullify SAB 121, or doing nothing and letting the deadline pass.
Potential Outcomes
If Biden chooses to veto the resolution, the congressional effort to nullify SAB 121 will likely end, as Congress does not have the votes needed to override the veto. Overriding a presidential veto requires a two-thirds majority in both the House and the Senate.
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Alternatively, Biden could sign the Joint Resolution into law, effectively nullifying SAB 121 and preventing the SEC from issuing a similar rule in the future. The president also has the option to take no action. If Congress remains in session during this period, the bill will become law by default, nullifying SAB 121. However, if Congress is not in session, the bill could face a pocket veto, where the President’s inaction prevents it from becoming law.
Broader Legislative Context
In addition to the resolution overturning SAB 121, the House recently passed H.R. 4763, the Financial Innovation and Technology for the 21st Century (FIT21) Act. This bill aims to establish a regulatory framework for crypto assets. Before the House voted on FIT21, the White House issued a statement indicating a willingness to collaborate with Congress to develop a balanced framework for digital assets, which was a softer tone compared to the previous veto threat.
