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US President Biden vetoes resolution overturning SEC guidelines
US President Joe Biden has signed a veto on a joint House resolution that would have repealed the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121, he announced Friday afternoon.
SAB 121 is a controversial SEC accounting guide that directs financial institutions that hold cryptocurrencies for customers to keep the assets on their balance sheets. Critics of the guidance say it makes it too difficult for financial institutions to work with crypto firms.
In his declaration In announcing the veto, Biden said he would not support any “measure that jeopardizes the welfare of consumers and investors.”
“By virtue of relying on the Congressional Review Act, this Republican-led resolution would inappropriately limit the SEC’s ability to establish appropriate barriers and address future matters,” his statement said. “This reversal of the SEC staff’s considered judgment risks undermining the SEC’s broader authorities regarding accounting practices.”
Biden’s statement echoed his previous comments about wanting to work with Congress on legislation addressing the digital asset market, saying “adequate guardrails that protect consumers and investors are needed.”
The veto came just hours after banking groups and members of Congress sent a pair of letters to Biden’s desk, asking him to sign the resolution to rescind SAB 121.
The letter from the banking organizations reports the guidelines, which the Government Accountability Office says prevent regulated banking groups from offering custodial services. The lawmakers’ letter urges the administration to at least work with the SEC to rescind the guidance if Biden still intends to veto the resolution, as he had threatened before the House voted on the measure.
The resolution passed both houses of Congress with an easy majority.
Last Friday, Sen. Ron Wyden (D-Ore.), a member of Biden’s party who voted for the resolution, said the guidance creates a different standard for cryptocurrencies than other assets in the financial sector during the conference CoinDesk Consensus 2024 in Austin, Texas.