According to BlockBeats, on June 1, President Joe Biden announced on a Friday afternoon that he had signed a joint resolution of the House of Representatives, vetoing a resolution that would have abolished the Staff Accounting Bulletin 121 (SAB 121) of the U.S. Securities and Exchange Commission (SEC). SAB 121 is a controversial accounting guidance from the SEC that requires financial institutions holding customer cryptocurrencies to keep the assets on their own balance sheets. Critics of the guidance argue that it makes it very difficult for financial institutions to collaborate with cryptocurrency companies.
In his veto announcement, Biden stated that he would not support any measures that 'endanger the welfare of consumers and investors.' He argued that abolishing SAB 121 would limit the SEC's ability to establish appropriate protective measures and address future issues, potentially weakening the SEC's broader powers in accounting practices. Hours before Biden's veto, banking industry groups and congressmen had sent two letters to Biden's desk, asking him to sign the resolution to overturn SAB 121.