President Biden Vetoes H.J.Res. 109: Protecting SEC's Regulatory Power on Cryptocurrency Accounting Practices
The President of the United States, Joseph R. Biden Jr., has vetoed H.J.Res. 109, a resolution that sought to disapprove the Securities and Exchange Commission's (SEC) Staff Accounting Bulletin No. 121 (SAB 121). SAB 121 deals with the accounting obligations of certain firms that safeguard cryptographic assets.
Driven by Republican leaders under the Congressional Review Act, the resolution aimed to limit the SEC's ability to establish appropriate regulatory measures and address future issues related to cryptographic assets. President Biden argued that this resolution could compromise the SEC's ability to implement effective accounting practices and emphasized the importance of maintaining protections that ensure the well-being of consumers and investors.
The president's veto highlights his administration's stance of not supporting measures that could compromise the financial security of consumers and shows an interest in collaborating with Congress to develop a balanced and comprehensive regulatory framework for digital assets. This framework would aim to promote responsible development of digital assets and innovation in payment systems, in addition to reinforcing the United States' leadership in the global financial system.
This act reaffirms the Biden administration's commitment to using existing regulatory capabilities to foster innovation in the cryptocurrency sector, while ensuring that these innovations do not compromise established financial standards or put consumers and investors at risk.
