American Bankers Association Implicated In Big Anti-Crypto Reveal

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As an analyst with a background in financial regulation and experience following the crypto industry, I believe that the American Bankers Association (ABA) played a pivotal role in the veto of SAB 121. The discovery of their letter to President Biden urging him to sign H.J. Res.109 into law hours before the veto is a significant development in this ongoing saga.

As a crypto investor, I’ve been closely following the developments surrounding SAB 121, the contentious bill that has become a major point of contention in the crypto community due to its potential negative impact on our industry. Recently, an intriguing revelation came to light: The American Bankers Association (ABA), an influential organization representing banks in the United States, reportedly wrote a letter appealing to President Biden, urging him to veto SAB 121. This new information adds another layer of complexity to the ongoing anti-crypto efforts by the administration.

H.J Res.109 Contest the SEC’s SAB 121

The content of the letter includes a request for President Biden to sign H.J. Res.109 into law.

Significant is the introduction of H.J. Res. 109, also known as the Congregational Review Act resolution, which disapproves of SEC’s Staff Accounting Bulletin 121. This resolution was put forth by prominent bipartisan legislators such as Senator Cynthia Lummis, Rep Mike Flood, and Rep Wiley Nickel.

The American Bankers Association, involved in drafting the crypto industry’s perceived adversarial legislation (Digital Asset Anti-Money Laundering Act), penned a letter urging President @POTUS to approve the repeal of H.J. Res. 109 (SAB 121) just prior to his veto.

— Eleanor Terrett (@EleanorTerrett) June 1, 2024

The contentious aspect of SAB 121 is that it requires banks to report their customers’ crypto assets as part of their financial statements. Notable figures, such as Senators Cynthia Lummis and Kirsten Gillibrand, along with Patrick McHenry, French Hill, Ritchie Torres, Mike Flood, and Wiley Nickel, are advocating for this policy change.

Back in March 2022, the securities regulator unilaterally issued the SAB 121 motion without obtaining approval from the necessary authorities or soliciting public feedback, as stated by the American Bar Association. This unexpected action sparked controversy in the financial market and prompted members of the US Congress from both parties to voice their opposition to the proposal.

Legislation opposed the SEC’s implementation of SAB 121 shortly after its announcement. Lawmakers argued that the Commission required approval from Congress before proceeding with the policy. This led to the introduction of H.J. Res.109, which aimed to overturn SAB 121. However, the Biden administration has now put a veto on this proposed legislation.

ABA And Lawmakers Repeal Veto on H.J Res.109 

Lawmakers quickly responded by urging President Biden to rethink his decision to reject their bill.

Based on the strong bipartisan approval in Congress, we strongly advise you to either sign H. J. Res. 109 into law or collaborate with the Securities and Exchange Commission (SEC) to retract the relevant staff guidance. This recommendation highlights the significant legislative backing and acknowledges the SEC’s authority to amend or rescind their bulletins.

The ABA’s letter to President Biden represents the organization expressing its support for the recent repeal initiative taken by U.S. lawmakers regarding SAB 121. The Association emphasized that this bill signifies a substantial shift from traditional accounting practices concerning custodial assets. Furthermore, it expressed concern that the proposal could potentially undermine the industry’s capacity to ensure secure custody of digital assets for its clients.

 

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2024-06-02 01:08