Regulation

Lawmakers Call on Biden to Reconsider Veto of SAB 121 Repeal

Published

7 months ago

June 2, 2024

Lawmakers are urging President Joe Biden to reconsider his decision to veto a legislative measure that seeks to repeal the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121 (SAB 121).

This appeal arises in the context of the measure passed in the House of Representatives and Senate, with support from both parties.

Lawmakers Call on Biden to Reconsider Veto of SAB 121

Wyoming Republican Senator Cynthia Lummis and North Carolina House Financial Services Committee Chair Rep. Patrick McHenry recently led the charge to repeal the Affordable Care Act by sending a formal letter to the president on Thursday. The letter went on to express the concern that the meeting prompted,

“Given the overwhelming bipartisan votes, we urge you to sign H. J. Res. 109 into law or work with the SEC to rescind the staff guidance,” pointing out legislative support and recognizing the trench of the amending or rescinding powers of the SEC bulletins.

Lummis, House Colleagues Urge President Biden Not to Veto Bipartisan SAB 121 CRA https://t.co/Uqo2ZF7gWa pic.twitter.com/TmCnSBLb88

— blockchain tipsheet (@blockchaintpsht) May 30, 2024

SAB 121 has been an issue of debate for some time now, largely due to its provision, which would require firms that custody cryptocurrencies to include these assets on their balance sheets as liabilities. Opponents claimed that this holds the potential to disrupt how banks adequately defends information technology resources.

Bipartisan Support and Presidential Veto

The Congress managed to repeal SAB 121 through a Senate vote that was 60 to 38 with a number of bi-partisan support and, similarly in the House with 228 members to 182 in support of the act. Several democrats supported the decision, meaning there was a good number of democrats who share the same view with republicans.

Nonetheless, President Biden has not ruled out vetoing the repeal as he raises worries about dangers that may arises and affect the financial regulatory models and the cryptos market.

According to the White House, the administration made it clear that concerns have been expressed that reducing the SEC regulatory authority poses a threat of substantial financial insecurity and market volatility.

Timeline and Next Steps

This resolution, described as H. J. Res 109, arrived at the president’s office only recently because of the congressional hold.

This change in the normal course of events pushes the decision-making time of the President to June 3 thereby providing additional time for thinking as well as to engage in discussions with the SEC and other interested parties if necessary.