Wall Street Asks Biden Not to Veto Congress’ Rejection of SEC Crypto Policy

Wall Street banks and lobbying groups are urging President Joe Biden not to veto Congress’ rejection of the Securities and Exchange Commission’s (SEC) crypto accounting policy. The controversial policy, known as Staff Accounting Bulletin No. 121 (SAB 121), would require banks to treat customers’ digital assets differently than other assets, potentially hindering crypto companies’ ability to do business with banks. The banking organizations argue that this policy imposes unnecessary capital and liquidity requirements on them, unlike their non-bank competitors. In a rare convergence of interests, Wall Street banks and members of Congress who support the digital assets sector are both advocating for the reversal of Biden’s vow to veto the congressional resolution. A letter signed by groups including the American Bankers Association and Financial Services Forum highlights the negative implications of SAB 121 on regulated banking organizations that offer digital asset custody services. On the same day, Senator Cynthia Lummis and Representative Patrick McHenry sent their own letter to Biden, urging him not to veto or to work with the SEC to rescind the staff guidance. Biden has until Monday to decide whether to veto the resolution or not.