Adrian Johnson
TLDR:
- President Biden opposes a joint resolution seeking to overturn the SEC’s crypto accounting rule.
- The resolution aims to reject the SEC’s guidance on how financial institutions should account for digital assets.
United States President Joe Biden has taken a firm stance against a joint resolution seeking to overturn the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin (SAB) No. 121, which governs the accounting treatment of digital assets. The resolution, known as H.J.Res. 109, is currently in the House of Representatives and aims to nullify the SEC’s guidance on how financial institutions should account for digital assets, potentially leading to increased capital expenses.
The White House expressed strong opposition to the joint resolution, stating that SAB 121 was issued in response to demonstrated risks and that limiting the SEC’s ability to regulate crypto-assets could introduce financial instability and market uncertainty. Despite bipartisan opposition, the Biden administration has indicated that President Biden would veto the resolution if it reached his desk. This sets the stage for a potential showdown between the executive and legislative branches over the future of cryptocurrency regulation in the United States.
This stance puts the Biden administration at odds with many in the crypto industry and some members of Congress from both parties. Despite criticism from Republicans and Democrats in the House Financial Services Committee, the White House remains determined to defend the SEC’s crypto accounting rule. The outcome of this conflict could have significant implications for the participation of traditional financial institutions in the digital asset ecosystem.
