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A major digital asset measure was vetoed by President Biden, and Senator Cynthia Lummis, a Republican from Wyoming, has expressed her opposition. The House and the Senate had already approved this bill.
On the social networking site X, Senator Lummis voiced her worries. Through its veto of the measure, she accused the Biden Administration of circumventing the legal process. A guideline note released in 2022 by the U.S. Securities and Exchange Commission (SEC) called Staff Accounting Bulletin (SAB) 121 was the target of the legislation.
SAB 121 mandates that companies must classify digital assets as liabilities on their balance sheets, even when they are merely holding these assets for customers. Senator Lummis argued, “The SEC should never use staff accounting bulletins to determine policies – especially for industries it does not regulate – yet that is the new norm under President Biden’s leadership.”
She contended that Congress had given the administration a chance to adjust its stance on crypto assets. However, instead of addressing the concerns of the American public and curbing the SEC, President Biden reinforced his administration’s policies, which Lummis believes harm American consumers.
Senator Lummis vowed to continue advocating for financial innovation and protections for crypto assets. “I will not stand idly by as this administration attempts to skirt the law, and I will continue to fight to promote financial innovation and key protections for crypto assets this administration seems hellbent on stifling,” she stated.
In his letter to the House, President Biden defended his decision, stating that the bill would undermine the SEC’s capacity to safeguard consumers. He explained, “SAB 121 reflects considered technical SEC staff views regarding the accounting obligations of certain firms that safeguard crypto assets. By virtue of invoking the Congressional Review Act, this Republican-led resolution would inappropriately constrain the SEC’s ability to set forth appropriate guardrails and address future issues.”
The President emphasized that overturning SAB 121 would weaken the SEC’s broader authority on accounting practices. “My Administration will not support measures that jeopardize the well-being of consumers and investors,” he concluded.