Just hours before US President Joe Biden vetoed the repeal of Staff Accounting Bulletin (SAB) 121 on May 31, the US banking industry’s leading lobbying organization – the American Bankers Association (ABA) – announced writes a letter to try to influence his decision.
“This harms investors, customers, and ultimately the system,” the American Bar Association wrote in a letter to Biden on May 31, before announcing its decision to veto a resolution of Congress to prevent regulated banking institutions from effectively providing digital asset protection services on a large scale. Repeal of SEC SAB 121 guidance.
Although both chambers of Congress, the House of Representatives and the Senate, voted to repeal the SAB 121 guidelines, Biden chose to use his presidential veto, preventing the guidelines from being repealed.
The lobbying group explained that SAB 121 represents a significant shift from how custody assets are typically managed and could make it more difficult for the industry to keep digital assets secure for clients.
Cryptocurrency industry players may be surprised by the ABA’s pro-crypto statement.
“SAB 121 represents a significant change from the long-standing accounting treatment of custodial assets and threatens the industry’s ability to provide its customers with safe and sound custody of digital assets,” the ABA explained.
“Limiting banks’ ability to provide these services leaves customers with few reliable, well-regulated options for protecting their digital asset portfolios and ultimately exposes them to increased risks,” she added.
about: Senator Lummis sends letter to Biden urging him not to use his veto to repeal SAB 121
For some in the cryptocurrency industry, the ABA’s pro-cryptocurrency statement may come as a surprise, especially since last year there were reports of a group helping well-known Sen. Elizabeth Warren for his skepticism towards cryptocurrencies, to draft anti-cryptocurrency legislation.
In December 2023, Cointelegraph reported on a video that appeared on
“The first thing we did was go to the American Bankers Association and say, ‘Help us shape this,’” Marshall said.
review: Crypto Voters Have Already Disrupted the 2024 Elections – and It’s Set to Continue
