Joe Biden has vetoed the Congressional decision on SAB 121.
According to Biden, SAB 121 would constrain the SEC from addressing future issues.
SAB 121 passed both chambers of Congress with an easy majority.
U.S. President Joe Biden vetoed a joint resolution by Congress that would have repealed the SECs Staff Accounting Bulletin 121 (SAB 121). Announcing his veto on Friday, Biden said he would not support any “measures that jeopardize the well-being of consumers and investors.”
In his statement, Biden described SAB 121 as a Republican-led resolution that would undermine the SEC’s ability to set necessary guardrails and address future issues. He noted that reversing the SEC staff’s considered judgment risks weakening the SEC’s broader authority regarding accounting practices.
Biden previously expressed his intention to work with Congress on legislation addressing the digital asset market. He stated that “appropriate guardrails that protect consumers and investors are necessary.”
Meanwhile, some banking groups and certain Congress members sent letters to the President urging him to sign the resolution to overturn SAB 121 a few hours before he vetoed it. A section of the letter claimed that the guidance, as noted by the Government Accountability Office, blocks regulated banking groups from offering custody services.
Furthermore, in their letter, the lawmakers urged the administration to at least work with the SEC to rescind the guidance if the President decided to go ahead with his earlier promise of vetoing the resolution.
It is worth noting that SAB-121 passed both chambers of Congress with an easy majority. According to Senator Ron Wyden of Biden’s Democratic party, the guidance creates a different standard for crypto than other assets in the financial sector.
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