The president turned down Congress’s crypto custody bill and SAB 121 was strongly protected

The cryptocurrency custody measure that would have repealed the SEC’s crypto guidelines, SAB121, was vetoed by President Biden.

Senate Bill 121 sought to rescind Staff Accounting Bulletin 121 (SAB121) issued by the United States Securities and Exchange Commission (SEC), but President Joe Biden vetoed the measure on Friday afternoon.

The President opposed the crypto custody measure that Congress had introduced to remove the SEC’s crypto asset guidelines because he thought it was wrong and may hurt investors and consumers.

Financial organizations are required to record cryptocurrency holdings held for consumers under the contentious SAB 121. Some feel that this regulation will make it more difficult for banks to work with cryptocurrency startups.

While acknowledging the promise of new crypto assets, President Biden issued a statement stressing the need for “proper guardrails” to keep investors and consumers safe. In order to create a fair regulatory framework for digital assets, he said he would be happy to cooperate with Congress.

The crypto custody measure that aims to abolish SAB 121 has received bipartisan support and is gaining progress in both the House and the Senate. But President Biden’s veto shows that his government is worried about the effects on the economy and markets of cutting the SEC’s regulatory power in the cryptocurrency sector.

The cryptocurrency community, meanwhile, is fuming over the move, claiming that it would hinder innovation at a crucial time for the sector.

A number of larger political factors have contributed to the veto, such as the ongoing legal battles of former president Donald Trump and his attempts to gain support from the cryptocurrency industry.

Also Read: Biden fails to use opportunity to “rectify” stance on cryptocurrency—Senator Lummis