United States Senator Cynthia Lummis has voiced her disapproval of President Joe Biden’s recent decision to veto the repeal of controversial cryptocurrency accounting guidelines. Lummis, a staunch advocate for financial innovation and cryptocurrency, argues that Biden’s move represents a missed opportunity to correct his administration’s stance on digital assets. The specific guidelines in question are the U.S. Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) No. 121, which mandates that firms holding customers’ crypto assets in custody must record them as a liability on their balance sheets. This requirement has made it less attractive for publicly reporting banks to engage in the crypto market.
Lummis emphasized that the administration’s decision goes against the will of the American people and the growing support for cryptocurrency in Congress. She vowed to continue her fight to promote financial innovation and protect crypto assets from what she perceives as stifling regulations imposed by the current administration.
Hours before Biden’s veto, Lummis sent a letter urging the President not to reject the Congressional repeal of SAB 121. In her letter, she criticized the SEC’s approach of issuing guidance without proper notice and comment rulemaking, thus avoiding a full commission vote on the contentious policy.
The veto has sparked significant debate among lawmakers, with Republican Senator Ted Cruz, another prominent pro-crypto figure, expressing his support for the industry. Cruz recently announced his entry into Bitcoin mining, highlighting the increasing political interest and participation in the crypto sector.
As the battle over crypto regulations continues, Lummis and other pro-crypto legislators remain committed to advocating for a regulatory environment that fosters innovation and protects the interests of the growing number of Americans involved in cryptocurrency.
