Introduction:
President Joe Biden has vetoed a resolution to reverse the SEC crypto guidelines, specifically the Staff Accounting Bulletin (SAB) No. 121. This decision has immediately drawn criticism from the cryptocurrency industry.
President Biden Vetoes SEC Crypto Guidelines
President Joe Biden has vetoed a resolution to reverse the SEC crypto guidelines, specifically the Staff Accounting Bulletin (SAB) No. 121. This decision has immediately drawn criticism from the cryptocurrency industry.
President Biden Defends His Decision
In a letter dated May 31, President Biden justified his decision, stating that overturning the SEC’s crypto guidelines would undermine the commission’s authority over accounting practices. He wrote, “This reversal of the considered judgment of SEC staff in this way risks undercutting the SEC’s broader authorities regarding accounting practices.” The president further emphasized that his administration would not support measures that could jeopardize the well-being of consumers and investors.
Controversial SEC Crypto Guidelines
SAB 121 requires institutions holding crypto assets to record these holdings as liabilities on their balance sheets. These SEC crypto guidelines, effective from April 11, have faced substantial pushback from the crypto community and lawmakers. The House of Representatives voted 228 to 182 to repeal the guidelines, and the Senate followed with a 60 to 38 vote in favour of repeal.
Criticism from the Crypto Industry
The Blockchain Association, a crypto advocacy group, expressed disappointment with Biden’s veto. They highlighted that bipartisan majorities in both Houses of Congress had recognized the harm posed by SAB 121. In a May 31 post on X, the group stated, “We’re disappointed that the admin chose to overrule bipartisan majorities in both Houses of Congress who recognized the harm created by SAB 121.” Ripple CEO Brad Garlinghouse echoed these sentiments, calling the decision “incredibly disappointing from this White House – at an incredibly pivotal time.”
