As President Biden defended the SEC’s crypto accounting policy in Staff Accounting Bulletin #121, the House of Representatives passed a resolution opposing it.
The US House of Representatives overwhelmingly approved a resolution Wednesday to reject SEC cryptocurrency accounting guidelines that the industry says discourage banks from dealing with crypto customers.
Senate Majority Leader Mitch McConnell (R-Ky.) has vowed to “vigorously fight” the resolution, and President Joe Biden has said he will “absolutely” veto it.
Since its introduction, the SEC’s Staff Accounting Bulletin (SAB 121) has been a target for criticism from digital asset companies and Republican lawmakers alike. The bulletin sought to clarify accounting for crypto assets by mandating that a bank holding a customer’s digital tokens should report them on its balance sheet, which could result in large capital expenditures. However, the policy guidance was later found to be inadequately handled in a government review, though the SEC and its chairwoman, Betsy Ross, have defended it.
According to a Wednesday statement from Biden, the White House believes the policy is worth preserving with a veto.
The resolution, SAB 121, was passed in response to “demonstrated technological, legal and regulatory risks” that have resulted in “substantial losses” to consumers, Biden said.
He added that the White House is “strongly opposed” to interrupting the SEC’s work on this issue.
The House vote overwhelmingly supported the resolution – with 21 Democrats voting in favor, despite Biden’s threat.
