Creative Rewording: “US President Biden Reverses Resolution on Controversial SAB 121 Rule Repeal by the House of Representatives”

Creative Rewording: "US President Biden Reverses Resolution on Controversial SAB 121 Rule Repeal by the House of Representatives"

Creative Rewording: "US President Biden Reverses Resolution on Controversial SAB 121 Rule Repeal by the House of Representatives"

President Biden overturned the resolution “Repealing SAB 121” made by Congress on Friday. SAB 121 is a controversial accounting guidance of the U.S. Securities and Exchange Commission (SEC), which requires financial institutions holding customer cryptocurrencies to record them as liabilities on their balance sheets. Critics of this guidance argue that it will make cooperation between banks and cryptocurrency companies very difficult.

In his statement announcing the veto, Biden also emphasized that this Republican-led resolution would limit the SEC’s ability to establish appropriate protective measures and address future issues. Forcing a reversal of the SEC’s judgment in this way could weaken the SEC’s broader authority in accounting practices.