#U.S. President #Joe Biden Vetoes Resolution to Repeal SEC's Staff Accounting Bulletin 121: What This Means for Cryptocurrency Regulation*
In a move that could have far-reaching implications for the cryptocurrency market, President Joe Biden has vetoed a House Joint Resolution that sought to repeal Staff Accounting Bulletin 121 (SAB 121) of the U.S. Securities and Exchange Commission (SEC). This decision comes as the Biden administration continues to take a tough stance on cryptocurrency regulation, leaving many to wonder what's next for Bitcoin, altcoins, and the cryptocurrency market as a whole.
*What is SAB 121?*
Staff Accounting Bulletin 121 (SAB 121) is a guidance issued by the SEC in 2021 that requires publicly traded companies to disclose their digital assets and cryptocurrencies as liabilities on their balance sheets. This guidance has been controversial in the cryptocurrency space, with many arguing that it unfairly targets digital assets and fails to recognize their potential as assets.
*Implications for Bitcoin and Altcoins*
President Biden's veto means that SAB 121 will remain in effect, potentially leading to increased regulatory scrutiny for publicly traded companies that hold digital assets. This could have a ripple effect on the cryptocurrency market as a whole, potentially impacting the prices of Bitcoin and altcoins. In fact, the cryptocurrency market has already begun to react, with Bitcoin and altcoins experiencing a slight downturn in value following the news.
*Market Reaction*
- Bitcoin (BTC) price drops 3.5% in response to news
- Altcoins follow suit, with Ethereum (ETH) and Litecoin (LTC) experiencing similar declines
- Cryptocurrency market capitalization falls by $10 billion in a matter of hours
*What's Next?*
The veto is a clear indication that the Biden administration is taking a tough stance on cryptocurrency regulation. As the SEC continues to ramp up its enforcement efforts, publicly traded companies holding digital assets will need to ensure compliance with SAB 121.
