Joe Biden Upholds SEC SAB 121
U.S. President Joe Biden issued a veto against H.J.Res. 109, a resolution that would disapprove of the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin No. 121 (SAB 121). In its veto document, Bides states that the approval of this Republican-led resolution would “inappropriately constrain the SEC’s ability to set forth appropriate guardrails and address future issues.” Furthermore, Biden stressed that his administration would not “support measures that jeopardize the well-being of consumers and investors.” Nonetheless, Biden explained that he is eager to work with Congress to issue a regulatory framework to promote the responsible development of digital assets in the U.S.
President Joe Biden to decide whether to veto or sign a resolution overturning the U.S. Securities and Exchange Commission (SEC)’s controversial crypto rules is approaching. The resolution passed both the House of Representatives and Senate despite a prior White House veto threat.
Crypto Currency
A cryptocurrency is a digital currency, which is an alternative form of payment created using encryption algorithms. The use of encryption technologies means that cryptocurrencies function both as a currency and as a virtual accounting system. To use cryptocurrencies, you need a cryptocurrency wallet.
Securities and Exchange Commission (SEC)
The U.S. Securities and Exchange Commission (SEC) is an independent federal government regulatory agency responsible for protecting investors, maintaining fair and orderly functioning of the securities markets, and facilitating capital formation. It was created by Congress in 1934 as the first federal regulator of the securities markets. The SEC promotes full public disclosure, protects investors against fraudulent and manipulative practices in the market, and monitors corporate takeover actions in the United States. It also approves registration statements for bookrunners among underwriting firms.
McHenry press President Biden not to veto SAB 121
Lawmakers pressed President Joe Biden not to veto a legislative measure overturning a controversial Securities and Exchange Commission bulletin that establishes accounting standards for firms that custody crypto.
In a letter sent on Thursday to President Biden, Republicans Sen. Cynthia Lummis, R-Wyo., and House Financial Services Committee Chair Patrick McHenry, R-N.C., among other lawmakers, cited bipartisan votes in the House and Senate as a reason not to veto.
Earlier this month, the full House and Senate voted in favor of the measure to repeal the SEC’s staff accounting bulletin, also called SAB 121. The bulletin has drawn controversy over the past year over concerns in the crypto industry that it could prevent banks from safeguarding digital assets. It requires firms that custody crypto to record customer crypto holdings as liabilities on their balance sheets.
“Given the overwhelming bipartisan votes, we urge you to sign H.J. Res. 109 into law or work with the SEC to rescind the staff guidance,” the lawmakers said in a statement. “Rescinding SAB 121 is well within the SEC’s authority and there is ample precedent for revisiting a staff accounting bulletin.”
Reps. French Hill, R-Ark., Andy Barr, R-Ky., Tom Emmer, R-Minn., Mike Flood, R-Neb., Ritchie Torres, D-N.Y., Wiley Nickel, D-N.C., and Dan Meuser, R-Pa., also signed the letter.
The House previously voted 228-182 to pass the measure, with mostly Republicans, though 21 Democrats did sign on. A week later, the Senate voted 60 to 38, with several Democrats, including Senate Majority Senate Majority Leader Chuck Schumer, D-N.Y., voting in favor of the measure.
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