"Staff Accounting Bulletin No. 121" is an example of the political friction surrounding the regulation of the crypto sector in the US. Regulations introduced by the SEC in 2022, abbreviated SAB 121, require publicly traded companies to include the cryptocurrencies they hold as liabilities on their balance sheets. From the perspective of the crypto sector, this is a significant competitive disadvantage.

Yesterday's vote in the US Senate resulted in a minor miracle: all parties voted to repeal the clause. This is "a clear sign that both houses of Congress, across all political lines, reject this scheme", said the crypto-lobby organization Blockchain Association on X. The week before, the US House of Representatives reached a similar conclusion with a vote of 228 to 182.

2/ The tally, a stunning 60 “Yeas” in the Senate vote, sends a strong signal that both houses of Congress, across the political divide, clearly disapprove of this rule.
— Blockchain Association (@BlockchainAssn) May 16, 2024

Yet joy over this is limited. Joe Biden announced earlier that he would veto such an outcome. To "Protect investors in crypto markets and protect the broader financial system", as the U.S. president explained.

If this happened, the bill would go back to Congress, where a two-thirds majority would again be needed.

"The threat of a veto by the president contradicts the fact that there is a growing awareness among the public, especially young people, that crypto is something our elected officials should be concerned about," says the Blockchain Association.

It is clear there is overwhelming opposition to SAB 121, and I urge @POTUS to reconsider his previous statement of intent to veto the resolution.
— Rep. Mike Flood (@USRepMikeFlood) May 16, 2024

Also, Mike Flood, who sits in the House of Representatives for the Republicans, states in a post on X: "Clearly there is overwhelming opposition to SAB 121, and I urge Joe Biden to reconsider his earlier statement of intent to veto the resolution."