President Biden vetoes SEC crypto-asset rule nullification resolution

Federal Issues Securities Securities Exchange Commission Cryptocurrency Rulemaking Agenda Congressional Review Act Veto

On May 31, President Biden vetoed H.J.Res. 109 subsequently returning the bill to Congress. This resolution, as previously covered by InfoBytes, was passed by the U.S. House of Representatives on May 8 to nullify an SEC Staff Accounting Bulletin 121 (SAB 121). The guidance, which has been in effect since April 11, 2022, described how the SEC staff expected entities to account for and disclose their custodial obligations to “safeguard crypto-assets held for their platform users.” In his veto message to the House, President Biden stated that the resolution would “inappropriately constrain” the SEC’s ability to “set forth appropriate guardrails and address future issues.” The resolution will now be sent back to the House of Representatives and would require an override vote of two-thirds of the House.