{"id":21856,"date":"2024-06-02T03:01:32","date_gmt":"2024-06-02T03:01:32","guid":{"rendered":"https:\/\/investmentbankingrules.com\/?p=21856"},"modified":"2024-06-02T03:01:32","modified_gmt":"2024-06-02T03:01:32","slug":"biden-vetoes-bill-overturning-sec-crypto-accounting-standard-sab-121-heres-what-that-means","status":"publish","type":"post","link":"https:\/\/investmentbankingrules.com\/?p=21856","title":{"rendered":"Biden Vetoes Bill Overturning SEC Crypto Accounting Standard SAB 121 \u2013 Here\u2019s What That Means"},"content":{"rendered":"

President Joe Biden has vetoed a resolution aimed at overturning the U.S. Securities and Exchange Commission\u2019s (SEC) Staff Accounting Bulletin (SAB) No. 121.
\nBiden argued that challenging the proposed guidelines would compromise the SEC\u2019s authority, leading him to veto the resolution.
\nBiden Addresses SAB 121<\/p>\n

In an official letter on May 31, Biden explained his decision, stating that reversing the SEC staff\u2019s considered judgment in this manner could undermine the SEC\u2019s broader authorities regarding accounting practices.
\n\u201cThis reversal of the considered judgment of SEC staff in this way risks undercutting the SEC\u2019s broader authorities regarding accounting practices,\u201d Biden wrote.
\n\u201cMy Administration will not support measures that jeopardize the well-being of consumers and investors.\u201d
\nThe controversial accounting guidelines, set to take effect on April 11, required institutions that custody crypto assets to record crypto holdings as liabilities on their balance sheets.
\nHowever, they faced significant backlash from the crypto community and lawmakers.
\nLawmakers in the House of Representatives voted to repeal the SEC\u2019s guidance, passing the bill to the Senate.
\nThe Senate echoed the House vote and elected to repeal SAB 121 by a margin of 60-38 votes.
\nThe decision to veto the bill has drawn frustration from the wider crypto community.
\nMany argue that it stifles innovation and hampers the industry during a critical time.
\nThe Blockchain Association, a crypto advocacy group, expressed disappointment in a post on May 31.
\nThey stated that the administration\u2019s choice to overrule bipartisan majorities in both houses of Congress, who recognized the harm caused by SAB 121, was disheartening.
\nLikewise, Cody Carbone, the Digital Chamber\u2019s chief policy officer, stated in a post on May 31 that it was a \u201cslap in the face to innovation and financial freedom.\u201d
\nRipple CEO Brad Garlinghouse added that the decision was incredibly disappointing and came at a pivotal time for the industry.
\nBiden vetoes the resolution to nullify SAB 121.
\nProcess? Who cares.
\nConsumer protection? No thanks.
\nAppeasing Gensler\u2019s crypto vendetta? Sure thing.
\nThis is a slap in the face to innovation and financial freedom. #Crypto #Fail pic.twitter.com\/4QPhKkhN4r
\n\u2014 Cody Carbone (@CodyCarboneDC) May 31, 2024<\/p>\n

House Passes Crypto Market Structure Bill FIT21<\/p>\n

Last week, the US House of Representatives approved a comprehensive bill to establish regulatory frameworks for digital asset markets, marking a huge win for the industry.
\nThe Financial Innovation and Technology for the 21st Century Act (FIT21) secured a 279-136 vote, with both Democrats and Republicans supporting the measure.
\nThe FIT21 bill intends to establish a regulatory regime for US crypto markets.
\nIt aims to introduce consumer protections, designate the Commodity Futures Trading Commission (CFTC) as a key regulatory authority for digital assets and non-securities spot markets, and provide clearer definitions of what constitutes a security or a commodity in the crypto token realm.
\nAs reported, Patrick McHenry, House Financial Service Committee chairman, is pushing the Senate to advance the FIT21 crypto legislation before the US elections.
\nAccording to McHenry, the House\u2019s approval of crypto market structure legislation is a \u201cwakeup call\u201d to take swift action.
\nHe also stressed that Senate Majority Leader Chuck Schumer\u2019s support and backing is important, particularly for stablecoin regulations.
\nThe post Biden Vetoes Bill Overturning SEC Crypto Accounting Standard SAB 121 \u2013 Here\u2019s What That Means appeared first on Cryptonews.<\/p>\n","protected":false},"excerpt":{"rendered":"

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