United States President Joe Biden has vetoed a resolution that would have repealed the United States Securities and Exchange Commission’s (SAB) Accounting Bulletin No. 121. The controversial decision immediately sparked criticism from the cryptocurrency industry.
“We are disappointed that the administration has chosen to ignore the bipartisan majorities in both houses of Congress that have recognized the harm caused by SAB 121,” cryptocurrency advocacy group the Blockchain Association said in a statement. article on May 31 after Biden argued that challenging the proposed guidelines would compromise the agency’s authority. Securities and stock exchanges.
“Overturning the considered judgment of the SEC staff in this way threatens to undermine the SEC’s broader powers over accounting practices,” he wrote in an official statement on May 31.
Biden added: “My administration will not support actions that jeopardize the well-being of consumers and investors. »
The SEC’s SAB 121 – which was filed in March 2022 – is a set of guidelines that requires institutions that hold crypto assets to record the crypto holdings on the liabilities side of their balance sheet.
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The guidelines were set to take effect on April 11, but were met with significant backlash from the cryptocurrency community and lawmakers.
House lawmakers voted to overturn the SEC guidance by a margin of 228-182 and passed the bill in the Senate. Once there, senators echoed the House vote and chose to repeal SAB-121 by a large majority, 60-38.
The broader cryptocurrency community has expressed frustration on social media, arguing that the decision only stifles innovation and holds back the industry during a critical time.
“It’s a slap in the face to innovation and financial freedom,” Cody Carbone, policy director of the Digital Chamber, said in a May 31 article.
“To say this is incredibly disappointing coming from the White House – at an incredibly pivotal time – is an understatement,” added Ripple CEO Brad Garlinghouse.
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