Senator Lummis sent a letter asking Biden not to veto the repeal of SAB 121
Republican Senator Cynthia Lammis recently sent a letter to President Joe Biden urging him not to reject the Congressional Securities and Exchange Commission's (SEC) Staff Accounting Bulletin-121 (SAB-121).
The pro-crito senator pointed to the controversial nature of SAB-121 and the SEC's issuance of the directive, which she described as inappropriate. She also noted the dubious nature of the regulator's disclosure of the directive.
The lawmaker wrote, “Instead of a notice and comment rulemaking, the SEC's rulemaking has prevented the full commission from voting on a controversial policy.”
The Wyoming senator continued, “It also provided a way for SEC staff to remove ads and provide feedback.” [Administrative Procedure Act]This prevented stakeholders, including banking regulators, from commenting on the policy.
She concluded her letter by referring to SEC Chairman Gary Gensler's refusal to repeal the rule and the “clear bipartisan message” sent to the government agency by voting to repeal SAB-121.
Related: Biden may reconsider veto of SAB 121 vote for crypto political support
The SEC's highly controversial Bulletin is set to go into effect on April 11, 2024, but has faced a backlash from the crypto community and lawmakers.
Lawmakers in the House of Representatives overturned the SEC's directive by a 228 to 182 margin and sent the bill to the Senate. Once there, senators voted to repeal SAB-121 in a decisive 60-38 vote, echoing the House's vote.
Joe Biden has warned Congress that if they vote to repeal the controversial payroll, he will use his executive powers to veto the repeal.
However, a recent shift in White House tenure to cryptocurrencies may offer a glimmer of hope that Biden may not reverse the controversial move.
Following former President Trump's comments indicating his support for the crypto industry and decentralized technology, the Biden White House appears to be appealing to pro-crypto voters by asking blockchain companies and companies to provide input to the administration's future crypto policy.
As the June 3 deadline approaches, the crypto industry is now patiently awaiting Biden's decision.
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