Senator Cynthia Lummis Appeals to President Biden to Uphold Repeal of Controversial SEC Bulletin
Summary:
Republican Senator Cynthia Lummis has written a letter to President Joe Biden, urging him not to veto the Congressional repeal of the SEC's contentious Bulletin SAB-121. Lummis criticized the SEC for bypassing standard procedures to put this Bulletin into effect, preventing stakeholders from commenting on the policy. Despite Biden's earlier threats to veto the repeal, a recent shift in his administration’s approach towards cryptocurrencies raises hopes that he may comply with the Congressional repeal. The crypto industry awaits Biden’s decision as a June 3 deadline approaches.
Cynthia Lummis, a Republican Senator, has penned a letter to President Joe Biden, making a fervent appeal to him not to overturn the recent Congressional reversal of the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin-121 (SAB-121). The senator, known for her pro-cryptocurrency stance, highlighted the controversy surrounding SAB-121 and the SEC's issuing of it, which she described as inadequate. She drew attention to the questionable circumstances under which the regulatory authority introduced the guidance.
The senator from Wyoming stated, "By choosing to issue guidance carelessly rather than engaging in the regular process of notifying and inviting public comment, the SEC was able to sidestep a full commission vote on a contentious policy." She added, “This enabled the SEC staff to bypass the notice and comment requirements of the Administrative Procedure Act, stopping stakeholders including banking regulators from voicing opinions on the policy.”
She wrapped up her letter by mentioning SEC Chair Gary Gensler's denial to retract the rule and the “blatantly bipartisan mandate” delivered to SEC through the Congressional vote to undo SAB-121.
The SEC's much-debated Bulletin was slated to commence on April 11, 2024, but encountered robust resistance from both the crypto enthusiasts and legislators. The House of Representatives members backed the repeal of the SEC’s guidance with a 228 to 182 victory, moving the bill to the Senate. Senators then seconded the House's decision, voting 60-38 to revoke SAB-121.
Joe Biden had cautioned Congress that he would exercise his Executive authority to veto the repeal if they chose to reverse the controversial Staff Accounting Bulletin. Nevertheless, a recent shift in the White House’s approach towards cryptocurrencies suggests the possibility of Biden not vetoing the repeal of this contentious regulation.
Following ex-President Trump’s supportive remarks about the crypto industry and decentralized technology, the Biden administration appears to be engaging pro-crypto voters by soliciting suggestions from blockchain firms for its future crypto policy.
As the June 3 deadline approaches, the crypto industry is eagerly waiting for Biden’s verdict.
Published At
5/31/2024 11:16:40 PM
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