According to Odaily, hours before US President Biden vetoed a congressional resolution aimed at overturning SAB 121, the American Bankers Association (ABA), the largest lobbying group in the US banking industry, penned a letter on May 31, attempting to sway his decision. The ABA stated in the letter that preventing regulated banking organizations from effectively providing large-scale digital asset protection services would harm investors, customers, and ultimately the financial system. They argued that SAB 121 represents a significant departure from the long-term accounting treatment of custodial assets and threatens the industry's ability to provide safe and reliable digital asset custody for its customers.
The ABA added that limiting banks' ability to provide these services leaves customers with virtually no well-regulated, trustworthy options to protect their digital asset portfolios, ultimately exposing them to greater risk. For some in the cryptocurrency industry, the ABA's support for cryptocurrency may come as a surprise, especially considering that last year, reports suggested that the organization helped Senator Elizabeth Warren, who is skeptical of cryptocurrency, draft anti-cryptocurrency legislation known as the 'Digital Asset Anti-Money Laundering Act'.
Previously, President Joe Biden vetoed a resolution that sought to overturn the controversial crypto asset accounting standard SAB 121 of the US SEC. In an official statement on May 31, he said, 'Overturning the SEC staff's thoughtful judgment in this way could undermine the SEC's broader authority in accounting practices.' Biden stated, 'My administration will not support measures that jeopardize the welfare of consumers and investors.'