United States President Joe Biden has vetoed a resolution aimed at overturning the U.S. Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) No. 121. This bulletin requires institutions that custody crypto assets to record these holdings as liabilities on their balance sheets.

In his official response to Congress, Biden expressed concerns about the implications of this reversal: "This reversal of the considered judgment of SEC staff in this way risks undercutting the SEC’s broader authorities regarding accounting practices." The guidelines, which were set to take effect on April 11, faced considerable opposition from both the crypto community and lawmakers.

The House of Representatives voted to repeal the SEC’s guidance with a margin of 228 to 182, and the bill subsequently passed to the Senate, where senators voted 60 to 38 in favor of repealing SAB-121. Despite this bipartisan support, Biden's veto has halted the repeal.

The Blockchain Association, a prominent crypto advocacy group, expressed disappointment in a post on X (formerly Twitter), stating: "We’re disappointed that the admin chose to overrule bipartisan majorities in both Houses of Congress who recognized the harm created by SAB 121."

U.S. Senator Cynthia Lummis also criticized Biden's decision, arguing that it goes against "the will of the American people" by preventing the revocation of the controversial guidelines.