The United States Senate approves a resolution that would nullify the accounting guidelines for digital asset custody imposed by SAB 121: is Biden ready to veto?
On May 16, the United States Senate approved a joint resolution requiring the SEC to nullify the directives imposed on financial institutions operating in the field of digital assets. With a vote of 60 to 38, the U.S. senators passed H.J.Res. 109, which nullifies the SEC staff’s SAB 121 bulletin. The guidelines in this bulletin require banks holding cryptocurrencies to record customers’ assets as liabilities on their balance sheets. This interpretation has caused confusion and received criticism from politicians who support the sector.
The Blockchain Association described the vote as a strong signal of Congress’s disapproval of the SEC’s imposed guidelines.
Senator Cynthia Lummis, who promoted the resolution in the Senate, stated:
“This is a win for financial innovation and a clear rebuke of the way the Biden administration and Chair Gary Gensler have treated crypto assets and marks the first time both chambers of Congress have passed standalone crypto legislation.”
Before the resolution was approved, on May 8, President Joe Biden stated that he intended to veto the bill to protect investors and defend the SEC’s work.
If the President of the United States vetoes the resolution, it will return to Congress and will require a two-thirds majority to be approved again.
