Republican Senator Cynthia Lummis has formally requested President Joe Biden to refrain from vetoing the recent Congressional repeal of the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin-121 (SAB-121). In her letter, Senator Lummis highlighted significant concerns regarding the manner in which the SEC issued this controversial guidance.

Senator Lummis, a staunch advocate for cryptocurrency, underscored the problematic process by which SAB-121 was implemented. She criticized the SEC for bypassing the traditional notice and comment rulemaking procedures, thereby avoiding a full commission vote on what she described as a contentious policy. "By inappropriately issuing guidance instead of engaging in notice and comment rulemaking, the SEC’s rulemaking was able to avoid a vote by the full commission on a contentious policy," she wrote.

The Wyoming senator further elaborated on the issue, emphasizing that the SEC’s approach allowed the staff to sidestep the Administrative Procedure Act’s provisions. This procedural shortcut, according to Lummis, denied stakeholders, including banking regulators, the opportunity to provide input on the policy. She pointed to SEC Chair Gary Gensler's refusal to rescind the rule as a significant concern, stating that Congress had sent a "clear bipartisan message" by voting to repeal SAB-121.

The SEC’s Bulletin-121, which was slated to take effect on April 11, 2024, faced substantial opposition from both the cryptocurrency community and lawmakers. The House of Representatives voted 228 to 182 in favor of repealing the guidance, a decision echoed by the Senate with a decisive 60 to 38 vote.

President Biden had previously warned that he would exercise his executive power to veto the repeal of SAB-121. However, there are indications that the White House's stance on cryptocurrency may be evolving. In light of recent remarks by former President Trump supporting the crypto industry and decentralized technologies, the Biden administration appears to be reaching out to blockchain companies and firms for input on future crypto policy.

As the June 3 deadline for Biden’s decision approaches, the crypto industry is anxiously awaiting his response. The potential veto or acceptance of the Congressional repeal could signal a significant shift in the administration’s approach to cryptocurrency regulation, reflecting a broader political strategy to appeal to pro-crypto voters.