Biden’s Crypto Veto Sparks Criticism from Sen. Lummis

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As a long-time crypto investor and supporter of financial innovation, I’m deeply disappointed with President Biden’s decision to veto the repeal of SAB 121. I believe this administration is missing an opportunity to correct its stance on crypto assets and promote growth in this emerging industry.

President Joe Biden of the United States has rejected a Congressional resolution aiming to rescind the contentious cryptocurrency accounting rules set by the Securities and Exchange Commission (SEC) through Staff Accounting Bulletin (SAB) No. 121. This move has elicited strong opposition from Senator Cynthia Lummis, a crypto advocate, who believes the administration missed a chance to adjust its position on digital assets.

“During X after Biden’s veto, Senator Lummis expressed her viewpoint in Congress, stating that the administration was given a chance to adjust its stance on cryptocurrencies. She believed the President’s action went against the “desires of the American populace” and promised to keep championing financial progress and safeguarding crypto assets.”

I won’t just watch as this administration tries to bypass the law, and I remain committed to advancing financial innovation and safeguards for crypto assets, which this administration appears determined to suppress.

My stance on the president’s decision to veto my SAB 121 CRA:

— Senator Cynthia Lummis (@SenLummis) June 1, 2024

Companies that keep customers’ cryptocurrencies in safekeeping under SAB 121 are required to list these assets as liabilities on their financial statements, accompanied by an equivalent asset entry. This regulation is believed to discourage banks from openly disclosing such activities. Before Biden’s veto, Senator Lummis wrote a letter to him advocating against the rejection of Congress’ repeal.

As a researcher studying regulatory affairs, I’ve come across Lummis’ criticism of the SEC in her letter. She expressed concern over the SEC bypassing a full commission vote and instead issuing guidelines on cryptocurrency regulation. This approach lacked the transparency and public input that notice-and-comment rulemaking provides.

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2024-06-01 11:33