Biden Vetoes SEC’s SAB 121 Repeal

President Joe Biden of the United States has rejected a resolution aimed at overturning the SEC’s Staff Accounting Bulletin (SAB) No. 121.

The move has sparked criticism from the crypto industry. The Blockchain Association, a crypto advocacy group, expressed their disappointment in a post on May 31st, stating that this decision undermines the bipartisan majority in Congress that recognized the damaging effects of SAB 121.

Biden argued that challenging these guidelines would undermine the SEC’s authority. In an official letter on May 31st, he stated that the reversal of the SEC staff’s judgment could harm the agency’s ability to regulate accounting practices.

He also emphasized that his administration will not support any measures that put consumers and investors at risk. SAB 121 requires institutions that hold crypto assets to record them as liabilities on their balance sheets.