Biden Has Lost His Chance to Side With Crypto: Senator Lummis

Biden Has Lost His Chance to Side With Crypto: Senator LummisBiden Has Lost His Chance to Side With Crypto: Senator Lummis

In this post:

  • President Biden vetoed a resolution to repeal the SEC’s controversial crypto accounting guidelines.
  • Senator Cynthia Lummis strongly criticized Biden for not supporting financial innovation and crypto protections.
  • Lummis argues the SEC should not use staff bulletins to set policies for industries it doesn’t regulate.

President Joe Biden has missed an important opportunity to support crypto. According to pro-crypto U.S. Senator Cynthia Lummis, Biden’s recent veto of the repeal of controversial cryptocurrency accounting guidelines clearly indicates his administration’s stance on the matter.

Also Read: Biden Vetoes Bill Permitting Banks To Hold Cryptocurrencies

Lummis clarified her thoughts following Biden’s decision to veto a Congressional resolution. This resolution aimed to overturn the U.S. Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) No. 121. “Congress gave the administration the opportunity to correct its position on crypto assets,” she stated in a statement on X.

Lummis Strongly Opposes Biden and the SEC

Senator Lummis is not holding back in her criticism of Biden’s actions. In her statement, she emphasized her commitment to fighting for financial innovation and key protections for crypto assets.

I will not stand idly by as this admin attempts to skirt the law, and I will continue to fight to promote financial innovation and key protections for crypto assets this admin seems hellbent on stifling.

Cynthia Lummis

Lummis argued that under President Biden’s leadership, the SEC has improperly used staff accounting bulletins to set policies, even for industries it does not regulate. She emphasized that Congress had given the administration a chance to correct its view on cryptocurrencies.

Biden Has Lost His Chance to Side With Crypto: Senator Lummis
Senator Cynthia Lummis. Source: Reuters

However, instead of heeding the American people’s will and restraining the SEC, Biden reinforced his administration’s flawed policies, harming American consumers. Lummis argues that the SEC’s use of staff accounting bulletins to set policies is inappropriate, especially since the SEC does not regulate the crypto industry.

Lummis Has Urged Biden Not to Veto SAB 121

Lummis sent a letter to Biden just hours before his veto, urging him not to reject the Congressional repeal of the SEC’s SAB 121. In her letter, Lummis wrote:

By inappropriately issuing guidance instead of engaging in notice and comment rulemaking, the SEC’s rulemaking was able to avoid a vote by the full commission on a contentious policy.

The lawmaker pointed out that the Government Accountability Office (GAO) determined SAB 121 is a rule for the Administrative Procedure Act (APA) and Congressional Review Act (CRA). This means the SEC should have engaged in a more transparent rulemaking process.

Also Read: Lummis and Gillibrand Draft New Stablecoin Regulation Bill

Lummis highlighted that the SEC’s approach allowed it to bypass the APA’s notice and comment provisions. This prevented stakeholders, including banking regulators, from commenting on the policy. “Rescinding SAB 121 is well within the SEC’s authority, and there is ample precedent for revisiting a staff accounting bulletin,” Lummis stated.

She also noted that most staff accounting bulletins over the last three decades have been revisions and rescissions of prior guidance. Instead of recognizing this and correcting the guidance, SEC Chair Gary Gensler has insisted the SEC will not revise or rescind the guidance.

Cryptopolitan reporting by Jai Hamid

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