President Joe Biden has vetoed a resolution aimed at overturning the U.S. Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin (SAB) No. 121. This move has sparked significant backlash from the cryptocurrency community and some lawmakers.
Biden’s Justification for the Veto
In a statement explaining his decision, President Biden emphasized his commitment to protecting consumers and investors. “My Administration will not support measures that jeopardize the well-being of consumers and investors,” he stated. He argued that challenging the SEC’s guidelines would undermine the agency’s authority over accounting practices.
Reactions from the Cryptocurrency Industry
The veto has drawn sharp criticism from crypto advocates. The Blockchain Association expressed disappointment, highlighting that bipartisan majorities in both the House of Representatives and the Senate had supported the repeal. “We’re disappointed that the administration chose to overrule bipartisan majorities in both Houses of Congress who recognized the harm created by SAB 121,” the group said in a May 31 post on X.
Details of the SEC’s Guidelines
SAB No. 121 requires institutions that hold cryptocurrency assets to record these holdings as liabilities on their balance sheets. The guidelines, set to take effect on April 11, faced significant opposition from the crypto community and lawmakers. Critics argue that these rules stifle innovation and create unnecessary burdens for the industry.
Also Read: Biden Faces Decision Deadline on SEC Crypto Rules Repeal
Congressional Actions and Responses
The House of Representatives voted 228 to 182 in favor of repealing the SEC’s guidance, and the Senate followed suit with a 60-38 vote. Despite these bipartisan efforts, Biden’s veto has halted the repeal process.
Industry Leaders’ Concerns
Many in the crypto industry voiced their frustration with the veto. Cody Carbone, chief policy officer of the Digital Chamber, called it “a slap in the face to innovation and financial freedom” in a May 31 X post. Ripple CEO Brad Garlinghouse echoed these sentiments, stating, “To say that this is incredibly disappointing from this White House—at an incredibly pivotal time—is an understatement.”
As the debate continues, the crypto community remains vocal about the potential negative impact of the SEC’s accounting guidelines on the industry’s growth and innovation.
