US President Joe Biden has vetoed a resolution to overturn the US Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin (SAB) No. 121. The controversial decision drew immediate criticism from the cryptocurrency community.
“We are disappointed that the Administration has overruled bipartisan majorities in both houses of Congress who recognized the harm caused by SAB 121,” cryptocurrency advocacy group the Blockchain Association said in a statement on May 31. post Biden argued that challenging the proposed guidelines would undermine the SEC’s authority.
“Such an overturning of SEC staff’s considered judgment threatens to undermine the SEC’s broader authority over accounting practices,” Bi said in a May 31 official filing. letter In response to Congress’ vote to repeal cryptocurrency accounting guidelines that require institutions that hold crypto assets to record their holdings as liabilities on their balance sheets.
“My administration will not support measures that put the well-being of consumers and investors at risk,” Biden added.
The guidelines were scheduled to come into effect on April 11. So do the cryptocurrency community and lawmakers.
Members of the House of Representatives voted 228-182 to repeal the SEC guidance, sending the bill to the Senate, where Senators joined the House vote and voted to repeal SAB-121 by a wide margin of 60-38.
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The crypto community at large took to social media to express their displeasure with the decision, arguing that it will only stifle innovation and hinder the industry at a critical time.
“This is an affront to innovation and financial freedom,” Cody Carbone, chief policy officer at the Chamber of Digital Commerce, said in a May 31 statement. post.
“To say that it is disappointing to hear these comments coming from the White House at such a critical time is an understatement,” Ripple CEO Brad Garlinghouse said. Added.
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