A US senator who supports cryptocurrencies is criticizing the Biden Administration for vetoing a bill that aimed to reverse a crucial guidance bulletin from the US Securities and Exchange Commission (SEC). Cynthia Lummis, a Republican senator from Wyoming, expressed her concerns on social media platform X, stating that the Biden Administration is attempting to bypass the law by vetoing the bill. The guidance bulletin in question, known as Staff Accounting Bulletin (SAB) 121, requires certain companies to classify digital assets as liabilities on their balance sheets, even if they are merely holding the assets on behalf of customers.
Lummis argues that the SEC should not use staff accounting bulletins to determine policies, especially for industries that it does not regulate. She believes that this has become the norm under President Biden’s leadership. Lummis highlights that Congress had given the administration an opportunity to reconsider its stance on crypto assets, but instead of heeding the will of the American people and reining in the SEC, President Biden chose to uphold his administration’s failed policies, which ultimately harm American consumers. Lummis vows to actively oppose the administration’s attempts to circumvent the law and will continue to advocate for financial innovation and crucial protections for crypto assets, which she believes the administration is determined to stifle.
President Biden, in a letter to the House, justified his veto by stating that enacting the bill into law would impede the SEC’s ability to protect consumers. He argues that SAB 121 represents the carefully considered views of the SEC staff on the accounting obligations of certain firms that safeguard crypto assets. By using the Congressional Review Act to overturn this guidance, the resolution led by Republicans would inappropriately limit the SEC’s authority to establish appropriate safeguards and address future issues. President Biden warns that this reversal could undermine the SEC’s broader powers regarding accounting practices. He affirms that his administration will not support measures that jeopardize the well-being of consumers and investors.
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