President Joe Biden has vetoed the bill aimed at revoking the SEC’s Staff Accounting Bulletin 121 (SAB 121). This decision, made on May 31, keeps the bulletin intact despite strong opposition from lawmakers.
Last month, both the House and Senate voted to repeal SAB 121, with notable bipartisan support. The bulletin requires crypto custodial firms to list customers’ crypto holdings as liabilities, sparking concerns in the crypto industry.
Biden stated that protecting consumers and investors is crucial for leveraging crypto’s potential benefits. The White House emphasized that limiting the SEC’s regulatory framework could cause financial instability.
Overturning Biden’s veto would require a two-thirds majority in both houses. This move underscores the administration’s commitment to stringent crypto regulation for long-term market stability.
