Biden Vetoes Resolution to Revoke Bank Crypto Custody Guidance
CryptoNewsTerminal Staff31 May, 2024
Biden Vetoes Resolution to Revoke Bank Crypto Custody Guidance
President Joe Biden has vetoed a bipartisan joint resolution that would have invalidated Accounting Standards Update (SAB 121) guidance on accounting for crypto custody by financial institutions. SAB 121 provides guidance on how banks and other financial institutions should account for crypto assets held in custody for their clients. The guidance was issued by the Financial Accounting Standards Board (FASB) in May 2022. The joint resolution, H.J. Res. 109, was passed by the House of Representatives in September 2022. It would have required the Securities and Exchange Commission (SEC) to rescind SAB 121. In his veto message, Biden said that SAB 121 "reflects the technical views of the SEC staff regarding accounting for crypto asset custody." He also said that H.J. Res. 109 "would inappropriately restrict or broadly undermine the SEC's authority." Biden's veto is a setback for proponents of the resolution, who argued that SAB 121 was too burdensome and would stifle innovation in the crypto industry. However, it is unlikely to have a significant impact on the SEC's ability to regulate crypto assets. ```
