Biden says no to changing crypto accounting rule. Find out why.

TLDR:

• President Joe Biden vetoes bill overturning SEC’s accounting standard SAB 121
• Biden argues that challenging the guidelines compromises SEC’s authority

Key Points:

President Joe Biden has vetoed a resolution aimed at overturning the U.S. Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin (SAB) No. 121. The controversial accounting guidelines required institutions that custody crypto assets to record them as liabilities on their balance sheets, facing significant backlash from the crypto community and lawmakers.

The decision to veto the bill has drawn frustration from the wider crypto community, with many arguing that it stifles innovation and hampers the industry during a critical time. The Blockchain Association and other industry figures expressed disappointment with the administration’s choice to overrule bipartisan majorities in Congress in repealing SAB 121.

In contrast, the House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21), marking a significant win for the industry. The bill aims to establish regulatory frameworks for digital asset markets and introduce consumer protections to the sector.