US President Joe Biden refuses to repeal SAB 121

President Joe Biden vetoed a resolution to overrule Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) No. 121. The controversial decision drew immediate criticism from the cryptocurrency industry.

“We are disappointed that the Administrator has decided to overrule bipartisan majorities in both houses of Congress who recognize the harm caused by SAB 121,” the Blockchain Association said in a May 31 post, arguing that if Biden challenges the proposed guidance: .” he declared. Undermines the authority of the SEC.

“Overturning the prudent judgment of the SEC staff in this way is a violation of accounting practices,” Bi wrote in a formal letter on May 31 in response to Congress’s vote to repeal the cryptocurrency accounting guidance requiring entities to manage cryptocurrency assets. “It risks undermining the SEC’s broad authority,” he wrote. Cryptocurrency holdings are recorded as liabilities on the balance sheet.

“Our administration will not support actions that jeopardize the well-being of consumers and investors,” Biden added.

The directive was scheduled to go into effect on April 11, but received significant backlash from both the cryptocurrency community and lawmakers.

House lawmakers voted 228 to 182 to repeal the SEC’s guidance, sending the bill to the Senate. There, senators agreed with the House vote to repeal SAB-121 by a wide margin of 60-38.

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The wider cryptocurrency community expressed frustration with the decision on social media, claiming it would only stifle innovation and hinder the industry at a critical time.

“This is a slap in the face to innovation and financial freedom,” Cody Carbone, chief policy officer at the Digital Chamber, said in a May 31 X post.

“To say this White House is incredibly disappointing at this incredibly important time is an understatement,” Ripple CEO Brad Garlinghouse added.

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