SAB 121: Biden vetoes bill and puts cryptocurrency industry under spotlight

In an important recent move for the cryptocurrency industry, United States President Joe Biden vetoed crypto legislation (SAB 121) related to the Securities and Exchange Commission (SEC). The PL was recently approved in the American House and Senate. Amid recent developments in the US, Biden’s veto puts Bitcoin and the cryptocurrency industry under the political and regulatory spotlight.

The proposed legislation aims to repeal the SEC’s Staff Accounting Bulletin (SAB) No. 121, which establishes restrictive guidelines for financial institutions regarding the custody of digital assets. The PL aims to reverse SEC guidance regarding the labeling of crypto assets as liabilities on company balance sheets.

When justifying the measure in a letter sent to the House of Representatives, Biden highlighted that withdrawing the guidance would harm the regulator’s ability to implement safeguards and protect investors.

“SAB 121 reflects the considered views of SEC technical staff regarding the accounting obligations of certain companies that hedge cryptoassets. By invoking the Congressional Review Act, this Republican-led resolution would unduly restrict the SEC’s ability to establish adequate safeguards and address future issues.

This reversal of SEC staff’s considered judgment risks undermining the SEC’s broader authorities regarding accounting practices. My Administration will not support measures that put the well-being of consumers and investors at risk”, he wrote.

Also on this occasion, the US president highlighted the guarantee of joint work with Congress in developing a regulatory framework for the sector. “Adequate safeguards that protect consumers and investors are needed to realize the potential benefits and opportunities of cryptoasset innovation. My administration looks forward to working with Congress to ensure a comprehensive and balanced regulatory framework for digital assets, building on existing authorities, that will promote responsible digital asset development and payments innovation and help strengthen state leadership. United in the global financial system. ”

It is worth remembering that recently the White House, under the administration of President Joe Biden, expressed strong opposition to the bill HJ Res. 109. This legislative proposal would allow highly regulated financial companies to act as custodians of cryptocurrencies, including Bitcoin. The administration stated that such a move would compromise the Securities and Exchange Commission’s (SEC) efforts to protect investors and ensure the security of the broader financial system. “If presented with HJ Res. 109, President Biden would veto the project”, said the Executive Office of the President.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.