Lawmakers Urge Biden to Reevaluate Veto on SAB 121 Repeal, Impacting Crypto Regulations

• Senators Cynthia Lummis and Patrick McHenry lead bipartisan efforts to persuade President Biden to reconsider his veto of the SAB 121 repeal.
• The Senate and House passed the SAB 121 repeal with significant bipartisan support: 60-38 and 228-182 votes, respectively.
• The delay in transmission extends Biden’s decision deadline on SAB 121 to June 3rd.

Lawmakers urge President Biden to reconsider his veto on the SAB 121 repeal, highlighting bipartisan support and potential impacts on the crypto market.

Lawmakers Call on Biden to Reconsider Veto of SAB 121

Wyoming Republican Senator Cynthia Lummis and North Carolina House Financial Services Committee Chair Rep. Patrick McHenry recently led a bipartisan effort to repeal the SEC’s Staff Accounting Bulletin 121 (SAB 121). In a formal letter to President Biden, they expressed their concerns and urged him to sign H. J. Res. 109 into law or work with the SEC to rescind the staff guidance. The letter emphasized the overwhelming bipartisan votes in favor of the repeal, highlighting the legislative support for amending or rescinding the SEC bulletins.

Bipartisan Support and Presidential Veto

The Congress managed to repeal SAB 121 through a Senate vote of 60 to 38, with significant bipartisan support. Similarly, the House saw 228 members supporting the act against 182. This bipartisan backing included several Democrats who shared the same view as Republicans. Despite this, President Biden has not ruled out vetoing the repeal, citing concerns about potential dangers that could arise and affect financial regulatory models and the crypto market.

According to the White House, the administration has expressed concerns that reducing the SEC’s regulatory authority could pose a threat of substantial financial insecurity and market volatility. This stance underscores the administration’s cautious approach to altering existing financial regulations, particularly those impacting the burgeoning cryptocurrency sector.

Timeline and Next Steps

This resolution, described as H. J. Res 109, arrived at the president’s office only recently due to the congressional hold. This delay in the normal course of events pushes the decision-making time for President Biden to June 3, thereby providing additional time for consideration and potential discussions with the SEC and other interested parties.

Conclusion

The bipartisan push to repeal SAB 121 reflects a significant legislative effort to address concerns within the cryptocurrency market. As President Biden’s decision deadline approaches, the outcome will likely have substantial implications for how cryptocurrency assets are treated on financial statements and the broader regulatory landscape. Stakeholders in the crypto and financial sectors will be closely monitoring the administration’s next steps, which could either reinforce or reshape the current regulatory framework.