President Biden Vetoes Repeal of Anti-Crypto SEC Guidelines, Sparks Industry Backlash

• U.S. President Joe Biden vetoed a resolution to repeal SEC Staff Accounting Bulletin (SAB) No. 121.
• SAB 121 requires companies holding customers' crypto assets to record them as liabilities, which has been deemed unfavorable by publicly reporting banks.

Amid all the presidential election talks and events, cryptocurrency is currently the hottest topic in the U.S. Most candidates seem to be trying to tap into the crypto community, gain support, and win the election. 

While candidates like Donald Trump are going all out of preaching the crypto, especially Bitcoin, some are swimming against the stream. U.S. President Joe Biden vetoed a resolution that aimed to overturn the U.S. Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) No. 121. And the cryptocurrency industry immediately criticized this action by the Biden administration.

“Today, despite bipartisan support, Pres Biden vetoed the repeal of SAB 121, the SEC’s punitive, anti-crypto accounting guidelines. We’re disappointed that the admin chose to overrule bipartisan majorities in both Houses of Congress who recognized the harm created by SAB 121,” Blockchain Association posted on X. 

Furthermore, pro-crypto U.S. Senator Cynthia Lummis also released a statement on the president's decision to veto my SAB 121 CRA. 

Senator Lummis stated that she will not remain passive while this administration tries to evade the law. She will persist in advocating for financial innovation and crucial protections for crypto assets, which this administration appears determined to suppress. 

“Congress gave the administration the opportunity to correct its position on crypto assets, but instead of listening to the will of the American people and reining in the SEC, President Biden doubled down on his administration’s failed policies at the expense of American consumers,” wrote Senator Lummis. 

For those unfamiliar, the SAB 121 guidelines require companies that custody customers' crypto assets to record them as a liability on their balance sheet. Additionally, they must have a corresponding asset, making this an unattractive option for publicly reporting banks.

Edited by Harshajit Sarmah