United States President Joe Biden has vetoed a resolution that would have overruled the U.S. Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) No. 121. The controversial decision was immediately met with criticism from the cryptocurrency industry.

"We’re disappointed that the admin chose to overrule bipartisan majorities in both Houses of Congress who recognized the harm created by SAB 121," crypto advocacy group the Blockchain Association declared in a May 31 X post following Biden arguing that withdrawing the guidelines would compromise the SEC's authority.

"This reversal of the considered judgment of SEC staff in this way risks undercutting the SEC’s broader authorities regarding accounting practices," he wrote in an official May 31 statement.

"My Administration will not support measures that jeopardize the well-being of consumers and investors," Biden added.

The SEC’s SAB 121 — introduced in March 2022 — is a set of guidelines that requires institutions that custody crypto assets to record crypto holdings as liabilities on their balance sheets.

The guidelines were set to take effect on April 11, but was met with considerable blowback from the crypto community and lawmakers alike.

Lawmakers in the House of Representatives voted to repeal the SEC’s guidance by a margin of 228 to 182 and passed the bill to the Senate. Once there, senators echoed the House vote and elected to repeal SAB-121 by a decisive 60-38 votes.

This is a developing story, and further information will be added as it becomes available.