U.S. banking lobby makes last-minute bid to stop Biden from refusing to overturn SAB 121

Hours before U.S. President Joe Biden refused to repeal SAB (Staff Accounting Bulletin Board) 121 on May 31, the American Bankers Association (ABA), the largest lobbying group for the U.S. banking industry, wrote a letter to sway Biden’s decision. .

“Preventing regulated banking institutions from effectively providing digital asset protection services at scale is detrimental to investors, customers, and ultimately the financial system,” the ABA wrote in a May 31 letter shortly before Biden decided to veto the congressional resolution. “It affects,” he wrote. Repeals the U.S. Securities and Exchange Commission (SEC) SAB 121 guidance.

Even though both houses of Congress voted in favor of repealing the SAB 121 guidelines, Biden used his presidential veto to prevent the guidelines from being overturned.

The lobbying group explained that SAB 121 represents a major change in the way custodial assets are typically handled and could make it more difficult for the industry to keep digital assets safe for customers.

Those in the cryptocurrency industry may find the ABA’s cryptocurrency advocacy statement surprising.

“SAB 121 represents a significant departure from long-standing accounting for custody assets and threatens the industry’s ability to provide customers with safe and sound custody of digital assets,” the ABA explained.

“If banks’ ability to provide these services is limited, customers will have few well-regulated, reliable options to protect their digital asset portfolios, ultimately increasing risk,” he added.

Related: Senator Lummis Writes Letter to Biden Urging His Veto on Repeal of SAB 121.

For some in the cryptocurrency industry, the ABA’s pro-crypto statements come as a surprise, especially after reports last year that the group helped draft cryptocurrency legislation from Senator Elizabeth Warren, who is known to be skeptical of cryptocurrencies. This may be surprising considering that

In December 2023, Cointelegraph reported a video released on

“The first thing we did was go to the American Bankers Association and say, ‘Please help us build this,’” Marshall said.

magazine: Crypto voters are already disrupting the 2024 election and will continue to do so.