Key Takeaways:
- The ABA opposes President Biden’s veto of the repeal of SAB 121, citing potential harm to investors and the financial system.
- SAB 121 limits banks’ ability to provide secure custodial digital asset services, increasing risks for customers.
- The ABA’s opposition highlights its evolving stance towards supporting the crypto industry in certain areas.
The American Bankers Association (ABA) expressed strong opposition to President Joe Biden’s veto of the repeal of the Staff Accounting Bulletin (SAB) 121 on May 31.
The ABA, the largest lobbying group for the U.S. banking industry, argued that SAB 121, which affects the treatment of custodial digital assets, will harm investors, customers, and the financial system.
SAB 121 threatens the banking industry’s ability to provide its customers with safe and sound custody of digital assets, and leaves consumers with few well-regulated, trusted options for safeguarding their digital asset portfolios.
— American Bankers Association (@ABABankers) May 31, 2024
They claim it limits banks’ ability to provide secure digital asset safeguarding services, leaving customers with fewer regulated options and increased risk.
Despite support from both the House and the Senate for repealing SAB 121, Biden used his veto power to uphold the SEC’s guidance.
🚨NEW: The American Bankers Association, which helped write what the #crypto industry says is @ewarren’s anti-crypto bill (Digital Asset Anti-Money Laundering Act), wrote a letter asking @POTUS to sign H.J. Res. 109 (SAB 121 repeal) into law hours before he vetoed it.…
— Eleanor Terrett (@EleanorTerrett) June 1, 2024
The ABA’s opposition to the veto is notable given its past involvement in anti-crypto legislation, including assisting Senator Elizabeth Warren with the Digital Asset Anti-Money Laundering Act.
This stance underscores the ABA’s shift towards supporting the crypto industry in specific contexts.
About The Author
Fleming Airunugba, a seasoned Web3 and crypto content expert, leverages his deep understanding of blockchain technology to bring the latest and most impactful news to the crypto community.
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