U.S. President Biden Vetoes Congressional Decision on SAB 121

U.S. President Biden vetoed the Congressional decision on SAB 121, rejecting a joint resolution that aimed to repeal the SEC's Staff Accounting Bulletin 121 (SAB 121). Biden, in his statement announcing the veto, emphasized his commitment to safeguarding the interests of consumers and investors.

Biden's rationale for the veto centered on the belief that SAB 121, which had received approval from both chambers of Congress, would hinder the SEC's ability to tackle forthcoming challenges. He argued that the resolution, primarily driven by Republicans, would impede the SEC's capacity to establish essential guidelines and handle future concerns. By going against the SEC's well-considered guidance, Biden cautioned against diminishing the regulatory authority of the SEC, especially concerning accounting standards.

The President had previously indicated his willingness to collaborate with Congress in developing legislative initiatives targeting the digital asset market. He stressed the imperative need for adequate protective measures that ensure the safety of consumers and investors within this sector.

Before Biden's decisive action, certain banking organizations and members of Congress had made direct appeals to him to endorse the resolution aimed at overturning SAB 121. Despite these efforts, Biden remained resolute in his stance and proceeded with the veto to retain the SEC's regulatory framework as outlined in SAB 121.