The American Bankers Association (ABA) recently appealed to President Joe Biden to reconsider his decision to veto the repeal of Staff Accounting Bulletin (SAB) 121. In a letter dated May 31, the ABA argued that preventing regulated banks from offering digital asset safeguarding services could harm investors and the financial system. Despite bipartisan support in Congress for repealing SAB 121, President Biden used his veto power to uphold the guidelines set by the U.S. Securities and Exchange Commission (SEC). The ABA expressed concern that the new rules could make it challenging for banks to securely handle digital assets for their customers. Interestingly, the ABA’s stance in favor of crypto surprised some industry experts, given its past involvement in drafting anti-crypto legislation with Senator Elizabeth Warren. This development underscores the ongoing debate surrounding the regulation and integration of digital assets in the traditional banking sector.
Vocabulary List:
- Appealed (verb): Make a serious or urgent requesttypically to the public.
- Reconsider (verb): Think or consider again.
- Veto (noun/verb): A constitutional right to reject a decision or proposal made by a law-making body.
- Repeal (verb): Revoke or annul (a law or act of parliament).
- Safeguarding (noun): Protecting from harm or damage with an appropriate measure.
- Bipartisan (adjective): Involving the agreement or cooperation of two political parties that usually oppose each other policies.
