Lawmaker Urges Biden to Reconsider Veto on SAB 121 Repeal

As a researcher with a background in financial regulation and experience working on Capitol Hill, I believe that the repeal of SAB 121 is an important issue for the crypto industry and should be given careful consideration by President Biden. While the SEC’s staff accounting bulletins are typically internal guidance documents, SAB 121 has had a significant impact on the ability of financial institutions to provide custody services for digital assets.

As a researcher, I would put it this way: I’ve come across an appeal from lawmakers asking President Joe Biden to reconsider his decision to veto a Congressional Review Act (CRA) resolution. This resolution seeks to reverse the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121 (SAB 121).

In both houses of Congress, the identical groups of parties have endorsed the passage of the bill. This legislation seeks to overturn SAB 121, a rule that has drawn criticism for potentially hindering traditional financial institutions from offering cryptocurrency custodial services.

Lummis, House Colleagues Urge President Biden Not to Veto Bipartisan SAB 121 CRA

— blockchain tipsheet (@blockchaintpsht) May 30, 2024

Under the guidance of U.S. Senator Cynthia Lummis (R-WY) and Representative Patrick McHenry (R-NC), a bipartisan initiative advocates for the revocation of SAB 121. They argue that this action falls within the Securities and Exchange Commission’s (SEC) jurisdiction, referencing historical instances where staff accounting bulletins have been revisited and withdrawn. This is the initial standalone crypto legislation to gain approval in both the Senate (60-38 votes) and the House (228-182 votes).

President Biden’s re-election team is showing a more open attitude towards the cryptocurrency sector, moving away from past cautious positions. To address the concerns of crypto advocates regarding potential policies, particularly SAB 121, the campaign aims to collaborate with experts in formulating relevant policy proposals for the community.

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2024-05-31 04:52