US President Joe Biden rejected the repeal of SAB 121

US President Joe Biden has rejected the US Securities and Exchange Commission's (SEC) decision to revoke Staff Accounting (SAB) No. 121. The controversial decision was immediately met with criticism from the cryptocurrency industry.

“We are deeply disappointed that the administration has chosen bipartisan members of both houses of Congress to repeal SAB 121,” the Blockchain Association said in a May 31, 2008 statement, arguing that it would oppose the proposed regulations. Violation of SEC mandate.

“Reversing the judgment of the SEC staff in this way is at risk of undercutting the broad powers of the SEC regarding accounting,” Biden wrote in an official letter on May 31 in response to Congress' vote to repeal the cryptocurrency accounting guidelines that require institutions holding crypto assets. To record crypto holdings as liabilities on their accounts.

“My administration will not support actions that threaten the safety of consumers and investors,” Biden added.

The guidelines are set to go into effect on April 11, but have faced strong opposition from the crypto community and lawmakers.

Legislators and the crypto community clarify their positions

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 by a wide margin of 60-38, echoing the House's vote.

RELATED: Man Behind AI-Generated Fake Biden Robocalls Sued

The broader crypto community has taken to social media to express its displeasure with the decision, saying it stifles innovation and puts the industry at a critical juncture.

“This is a slap in the face to creativity and financial freedom,” said Cody Carbone, chief policy officer of the Digital Chamber, in a May 31 post.

Ripple CEO Brad Garlinghouse added: “To say this is incredibly disappointing from the White House – at an incredibly critical time – is an understatement.

Magazine: Crypto voters are rocking the 2024 election — and it's set to continue.