American Bankers Association Appeals Against Biden's Veto on SAB 121 Repeal Amid Crypto Concerns
Summary:
Before President Joe Biden vetoed the repeal of the Staff Accounting Bulletin (SAB) 121, the American Bankers Association (ABA) wrote a letter, stating this could harm investors and the financial system. Despite support for the repeal from Congress, Biden used his veto power to uphold the guidance. The ABA, surprisingly supportive of crypto, voiced concerns about this impacting the safe handling of digital assets. This shift comes after ABA previously aided Senator Elizabeth Warren, a staunch crypto critic, in constructing anti-crypto legislation.
Before U.S. President Joe Biden axed the repeal of Staff Accounting Bulletin (SAB) 121 on the last day of May, the American Bankers Association (ABA), a prominent lobbying group for the country's banking sector, crafted a letter trying to influence his choice. The ABA's May 31 letter to Biden, penned just before his veto announcement, expressed concerns that prohibiting banking regulation bodies from efficiently offering large-scale digital asset protection services would negatively impact investors, customers and the broader financial framework.
While both houses of Congress - the House of Representatives and the Senate - passed the repeal of the SAB 121 ruling, Biden exercised his veto power to maintain the guidance. The ABA clarified that the SAB 121 is a significant shift from the conventional handling of custodial assets and might make it more challenging for the sector to ensure the secure handling of digital assets for clients.
Despite the ABA's pro-digital currency stance surprising those in the crypto domain, it must be remembered that last year, the association supported Senator Elizabeth Warren, a crypto critic, in drafting legislation against digital currencies. In December 2023, as per a Cointelegraph report, a video emerged on X (formerly Twitter), wherein Roger Marshall confessed that the American Bankers Association was approached by him and Warren for help in constructing the Digital Asset Anti-Money Laundering Act.
Interestingly, the 2024 elections are already witnessing disruptions by crypto voters, and it’s set to continue.
Published At
6/2/2024 7:59:05 AM
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