The regulation of the crypto market remains a hot topic. On May 31, just before U.S. President Joe Biden vetoed the repeal of Staff Accounting Bulletin (SAB) 121, the American Bankers Association (ABA), a major lobbying group for the U.S. banking sector, sent a letter to sway his decision.

Significant Action in the U.S.

On May 31, the ABA wrote to President Biden, making a strong case against the repeal. The letter was sent just before Congress announced its decision to veto. The ABA argued that stopping regulated banks from offering crypto asset custody services on a large scale would harm investors, customers, and the financial system as a whole. For the latest updates on financial news, visit COINTURK FINANCE.

The U.S. Securities and Exchange Commission (SEC) is repealing the SAB 121 guidelines. Despite the House of Representatives and the Senate voting to repeal these guidelines, President Biden used his veto power to block the repeal.

Details on the Process

The ABA highlighted that SAB 121 marks a significant shift from the usual handling of custodial assets and could hinder the sector's ability to secure crypto assets for customers. They noted that this change deviates from long-standing accounting practices and jeopardizes the safety and soundness of digital asset custody.

Restricting banks from providing these services would leave customers with fewer well-regulated and reliable options to protect their crypto portfolios, ultimately increasing their risk.

Interestingly, some in the crypto industry might find the ABA’s supportive stance on crypto surprising. This is particularly noteworthy given that last year, the ABA reportedly assisted Senator Elizabeth Warren, a known crypto skeptic, in drafting anti-crypto legislation.

In December 2023, a video on X revealed that Roger Marshall and Elizabeth Warren sought the ABA's help in drafting the Crypto Asset Anti-Money Laundering Act. Marshall stated, "The first thing we did was go to the American Bankers Association and ask for help."

Conclusion

In conclusion, President Biden's veto of the repeal of SAB 121 underscores the ongoing debates around crypto regulation. The ABA's unexpected support for crypto custody services highlights the complexity and evolving nature of the regulatory landscape in the financial sector.