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Biden vetoes Congressional repeal of anti-crypto banking measure
President Joe Biden announced his decision to veto Friday afternoon Move by the House of Representatives aimed at repealing Securities and Exchange Commission (SEC) Staff Accounting Bulletin 121 (SAB 121).
The SEC’s controversial accounting guidelines require financial institutions that hold crypto assets for clients to include those assets on their balance sheets, which critics say makes it difficult for these institutions to work with crypto companies. In his veto statementPresident Biden wrote:
This Republican-led resolution would inappropriately limit the SEC’s ability to establish appropriate barriers and address future issues. This reversal of the SEC staff’s considered judgment risks undermining the SEC’s broader authorities regarding accounting practices. […] My administration will not support measures that jeopardize the well-being of consumers and investors.
Banks cannot hold cryptocurrencies
The veto announcement came shortly after the banking group American Banker Association sent a letter to the Presidentinviting him to sign the resolution to rescind BRS 121. The letter from the banking organizations argues that the guidelines, according to the Government Accountability Office, prevent regulated banking groups from offering custodial services.
Lawmakers also requested that the administration work with the SEC to rescind the guidance should the President still intend to veto the resolution. Although the resolution passed both houses of Congress with a significant majority, President Biden’s veto demonstrates his administration’s position on the issue.
Sen. Ron Wyden (D-Ore.), a member of Biden’s party who voted for the resolution, criticized the guidance during CoinDesk’s Consensus 2024 conference in Austin, Texas, arguing that it creates a different standard for cryptocurrencies than other financial sector assets.