President Joe Biden just vetoed a resolution to overrule Staff Accounting Bulletin (SAB) No. 121 of the U.S. Securities and Exchange Commission (SEC). This decision caused much controversy and received strong criticism from the cryptocurrency industry as well as bipartisan lawmakers.
Resolution and Response The proposed resolution seeks to challenge SEC guidance on how banks should account for crypto assets. The Blockchain Association, a cryptocurrency advocacy group, expressed disappointment, saying the Biden administration ignored bipartisan support in both the House and Senate to repeal SAB 121.
Reasons for Veto In his letter to Congress, Biden asserted that repealing SAB 121 would weaken the SEC's authority over accounting practices. He emphasized that the SEC's ruling should not be overturned, as it would weaken the agency's regulatory authority. Biden argued that SAB 121 reflects the SEC's technical view on the accounting obligations of companies holding cryptocurrencies.
Congressional Vote The U.S. House of Representatives voted to repeal the SEC guidance 228-182, and the Senate also passed the bill 60-38. However, Biden's veto overruled the decision, leading to disappointment in the crypto community.
Reaction From The Crypto Community The crypto community expressed dissatisfaction, saying Biden's veto stifles innovation and hinders industry growth. They believe the decision is a step backward for U.S. leadership in the global financial system.
Reaction From The Republican Party Donald Trump, the potential Republican candidate for the November election, has promised to support the cryptocurrency industry if re-elected. Trump believes that America should be at the forefront of the blockchain revolution, contrary to Biden's views.
Conclude
Biden's decision to veto this resolution has created much controversy and mixed reactions. While Biden emphasized the importance of the SEC's regulatory authority, the crypto community and some lawmakers say it hinders growth and innovation in this promising industry.
