Biden's Crypto Veto Sparks Criticism from Senator Lummis

US President Joe Biden vetoed a congressional resolution that would have repealed the controversial cryptocurrency accounting standard, SEC Accounting Bulletin (SAB) No. 121. The decision drew harsh criticism from pro-crypto Senator Cynthia Lummis, who accused the administration of missing an opportunity to correct its stance on crypto assets.

"Congress gave the administration an opportunity to correct its stance on crypto assets," Lummis said on X after Biden's veto. She argued that the president's intervention went against the "will of the American people" and pledged to continue advocating for financial innovation and protecting crypto assets.

SAB 121 requires companies that custody client crypto assets to record them as liabilities on their balance sheets with corresponding asset requirements, which is seen as a deterrent to publicly reporting banks. Hours before Biden's veto, Lummis had written to Biden urging him not to reject Congress' repeal of the bill.

In the letter, Lummis criticized the SEC for bypassing a full committee vote and issuing guidance instead of engaging in notice and comment rulemaking. Although both the House and Senate voted to reject the guidance, Biden's veto heightened tensions in the debate over cryptocurrency regulation.