U.S President Joe Biden has officially vetoed the House Joint Resolution that aimed to repeal the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121, according to his announcement on Friday afternoon. The controversial SAB 121 provides accounting guidance to financial institutions regarding the handling of crypto assets for customers, requiring them to keep these assets on their own balance sheets. Critics argue that this guidance poses challenges for financial institutions when working with crypto companies. In his statement, Biden emphasized his commitment to protecting consumers and investors, stating that he would not support any measures that jeopardize their well-being. He further explained that the resolution, which was initiated by Republicans, would limit the SEC’s ability to establish appropriate regulations and address future issues. Biden’s statement aligns with his previous remarks on the importance of collaborating with Congress to develop legislation that safeguards the digital asset market. The veto was issued shortly after banking groups and members of Congress sent letters urging Biden to sign the resolution. These letters highlighted concerns about the impact of SAB 121 on regulated banking groups and emphasized the need for collaboration between the administration and the SEC to address the guidance. Despite the resolution receiving significant support in both chambers of Congress, Biden ultimately decided to veto it. Earlier in the day, Senator Ron Wyden, a member of Biden’s party who voted in favor of the resolution, expressed his belief that SAB 121 creates an unequal standard for crypto assets compared to other financial sector assets during a discussion at CoinDesk’s Con.
