US President Biden overturned the resolution “Repeal SAB 121” made by Congress on Friday. SAB 121 is a controversial accounting guidance by the US Securities and Exchange Commission (SEC), which requires financial institutions holding customer cryptocurrencies to record them as liabilities on their balance sheets. Critics of the guidance argue that this will make cooperation between banks and cryptocurrency companies extremely difficult.
In announcing the veto, Biden stated:
Furthermore, Biden emphasized that this Republican-led resolution would limit the SEC’s ability to establish appropriate protective measures and address future issues. Forcing a reversal of the SEC’s judgment in this manner could weaken its broader authority in accounting practices.
