TechFlow reports, according to The Block, that U.S. President Biden has vetoed a resolution aimed at overturning the SEC's accounting guidance on cryptocurrency custody (SAB 121).
In a letter published on the White House website addressed to the U.S. House of Representatives, Biden stated: "My Administration will not support measures that jeopardize the interests of consumers and investors. Appropriate safeguards are necessary to realize the potential benefits of innovation in crypto assets while protecting consumers and investors."
Overturning this veto would require a two-thirds majority vote in both chambers of Congress. Previously, both the Senate and the House passed the resolution seeking to overturn SAB 121.
SAB 121 was first issued in 2022 and has been controversial over the past year. It requires custodians of cryptocurrencies to record digital assets held on behalf of customers as liabilities on their balance sheets. The crypto industry fears this could discourage banks from offering custody services for digital assets.
