Key Points
- Republican Senator Cynthia Lummis has urged President Joe Biden not to veto the Congressional repeal of the SEC’s SAB-121.
- The crypto industry awaits Biden’s decision as the June 3 deadline approaches.
Republican Senator Cynthia Lummis has penned a letter to President Joe Biden, encouraging him not to veto the recent repeal of the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin-121 (SAB-121) by Congress.
Contentious Nature of SAB-121
The senator, known for her pro-crypto stance, highlighted the controversial nature of SAB-121 and the SEC’s issuance of the guidance, which she deemed inappropriate. She also drew attention to the questionable circumstances under which the regulator disclosed the guidance.
Lummis wrote, “By issuing guidance improperly instead of engaging in notice and comment rulemaking, the SEC’s rulemaking was able to sidestep a vote by the full commission on a contentious policy.”
She further explained, “This also provided SEC staff a means to evade notice and comment provisions of the Administrative Procedure Act, which prevented stakeholders, including banking regulators, from being able to comment on the policy.”
Resistance to SAB-121
The senator concluded her letter by mentioning SEC Chair Gary Gensler’s refusal to withdraw the rule and the “clear bipartisan message” Congress delivered to the government agency by voting to repeal SAB-121.
The contentious Bulletin from the SEC was scheduled to come into effect on April 11, 2024, but faced significant resistance from the crypto community and lawmakers. The House of Representatives voted to repeal the SEC’s guidance by a margin of 228 to 182 and passed the bill to the Senate. The Senate followed suit and decided to repeal SAB-121 by a decisive 60-38 votes.
President Biden had previously warned Congress that he would use his Executive powers to veto the repeal of the controversial Staff Accounting Bulletin if they voted for it.
However, a recent shift in the White House’s stance towards cryptocurrencies may indicate that Biden might not veto the repeal of the controversial measure. Following comments from former President Trump indicating his support for the crypto industry and decentralized technology, the Biden administration seems to be courting pro-crypto voters by soliciting input from blockchain companies and firms for its future crypto policy.
The crypto industry now waits for Biden’s decision as the June 3 deadline is fast approaching.
