Biden vetoes repeal of SAB121 bill, Bitcoin drops by $66,000! SEC crypto accounting rules draw outrage

This site (120btC.coM): Both houses of the U.S. Congress passed a resolution in mid-May to abolish the U.S. Securities and Exchange Commission’s (SEC) cryptocurrency accounting standard “SAB121” and become the U.S. The first encryption bill sent to the president. However, Biden formally vetoed the bill to repeal SAB 121 earlier today.

Biden: Repealing SAB121 may harm the well-being of consumers and investors

Biden stated in a letter to the House of Representatives that SAB121 reflects the SEC’s technical team’s thorough protection of the accounting liability of crypto-asset companies. Consider.

“This Republican-led resolution (referring to the repeal of SAB 121) would unduly limit the SEC’s ability to set appropriate safeguards and address future issues. Reversing the SEC staff’s considered judgment in this manner could undermine The SEC’s broad authority over accounting practices. My administration will not support any measures that could harm the well-being of consumers and investors. Establishing appropriate safeguards to protect consumers and investors is critical to leveraging the potential and opportunities of crypto-asset innovation. Important. My administration wants to work with Congress to ensure a comprehensive and balanced regulatory framework for digital assets that will build on existing authorities to promote the responsible development of digital assets and payments innovation and help strengthen the United States’ role in global finance. leadership in the system. Therefore, I will veto this resolution.”

##What is SAB121?

SAB121 will be implemented in March 2022. The SEC requires digital asset custodians to treat the digital assets they hold as liabilities and calculate them at fair value on the balance sheet. This rule means that if a bank holds $1 billion worth of Bitcoin on behalf of a customer, it must hold $1 billion in cash to offset this "liability" on its balance sheet.

This requirement is widely considered unreasonable because the assets belong to the customers, not the bank's own assets. Critics argue that SAB121 effectively excludes banks from the cryptocurrency market, which in turn reduces customer protection.

On February 14 of this year, a coalition of trade groups composed of the American Bankers Association, the Bank Policy Institute, the Financial Services Forum, and the Securities Industry and Financial Markets Association sent a letter to SEC Chairman Gary Gensler, He was asked to reassess and revise SAB121 to improve the situation in which cryptocurrencies are restricted in the banking industry.

Cody Carbone: This is a slap in the face to innovation and financial freedom

In response, the encryption community and the U.S. Congress expressed their dissatisfaction with Biden's decision. Digital Chamber Policy Director Cody Carbone said on X: Biden vetoed the resolution to repeal SAB121 (was this to) protect consumers? Forget it; pandering to Gensler’s hostility to cryptocurrencies? Of course this is a slap in the face to innovation and financial freedom.

The Republican Committee on Financial Services of the U.S. House of Representatives also said: Biden vetoed the SAB121 bill, which is really disappointing. The move ignores multiple bipartisan votes and sends a clear message to the administration that its approach to digital asset policy is wrong. Congress will continue to fight for clarity on digital asset regulation.

Ethereum core developer eric.eth said on X that Biden’s rejection of SAB121 shows that the Democratic Party is not truly committed to cooperating with the cryptocurrency industry.

"The Ethereum ETF was approved because the SEC had no reasonable grounds for rejection. The Democratic Party's suppression of cryptocurrencies is proceeding with unprecedented intensity."

Bitcoin fell below 6.7 US$10,000

Against this background, the price of Bitcoin once stood at US$69,000 at about 8:30 last night, and the upward momentum has declined and selling pressure has emerged. It once fell below $67,000 at midnight today, hitting a low of $66,670.

It was temporarily trading at US$67,474.39 before the deadline, down 1.44% in the past 24 hours.

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