President Biden overturned the resolution “Repeal SAB 121” made by Congress on Friday. SAB 121 is a controversial accounting guidance from the U.S. Securities and Exchange Commission (SEC), which requires financial institutions holding customer cryptocurrencies to record them on their balance sheets as liabilities. Critics of the guidance argue that this would make collaboration between banks and cryptocurrency companies very difficult.
In his statement announcing the veto, Biden stated:
Furthermore, Biden emphasized that the resolution, led by Republicans, would limit the SEC’s ability to develop appropriate protective measures and address future issues. Forcing a reversal of the SEC’s judgment in this manner could weaken the SEC’s broader authority in accounting practices.
