President Joe Biden has vetoed a resolution that aimed to overturn the U.S. Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) No. 121. The decision has sparked criticism from the cryptocurrency industry.
The Blockchain Association, a crypto advocacy group, expressed their disappointment in an online post on May 31. They argued that the reversal of the SEC’s guidelines, which require institutions holding crypto assets to record them as liabilities, undermines the SEC’s authority. In response, President Biden defended the decision, stating that his administration will not support measures that put consumers and investors at risk.
The guidelines were scheduled to go into effect on April 11 but faced strong opposition from both the crypto community and lawmakers. The House of Representatives voted 228 to 182 in favor of repealing the SEC’s guidance, and the bill was subsequently passed to the Senate. The Senate mirrored the House’s decision, repealing SAB-121 with a vote of 60 to 38.
The broader crypto community expressed frustration with the decision, claiming that it stifles innovation and hampers the industry during a critical period. Digital Chamber’s chief policy officer, Cody Carbone, called it a setback for innovation and financial freedom, while Ripple CEO Brad Garlinghouse described it as incredibly disappointing.
Overall, the veto of the resolution has stirred controversy within the cryptocurrency sector, highlighting the ongoing tension between regulatory oversight and technological advancement.