U.S. President Joe Biden has criticized a plan to cancel some important rules from the Securities and Exchange Commission (SEC). These rules, known as Staff Accounting Bulletin 121 (SAB 121), were announced on Friday.

SAB 121 is a rule that tells banks that handle digital coins (like the ones you use in video games) so their customers can keep these coins in their own records. Some people think this rule is bad because it makes it really hard for banks to do business with companies that deal with digital coins.

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• U.S. President Joe Biden has vetoed a resolution to reverse the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121 (SAB 121), a directive requiring financial institutions managing customer cryptocurrencies to retain these assets on their balance sheets.
• Some banks and people who make laws think the current rule is too hard and stops banks from offering certain services.
• Even with this, President Biden wants to ensure that people who use these services are safe. He’s also ready to work with the people who make laws to come up with new rules for digital money.

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Biden Vetoes Resolution Aimed at Nullifying SEC’s Crypto Guidelines

When President Biden said no to changing the rule, he explained that he didn’t want to support anything unsafe for people, like you and your parents, who use digital coins.  He’s also ready to team up with a group of important folks called Congress to create new rules about how we can use digital coins, just like the ones you earn and use in your favorite video games.

President Biden was worried about the plan, mainly backed by Republicans, because he thought it could unfairly limit the SEC’s power to make important safety rules and address future challenges. He cautioned against messing with the SEC’s rules by not following its team’s careful decisions.

The president’s decision came after he received letters from banking groups and members of Congress asking him to support the plan to cancel SAB 121.

The banks said that this rule stops them from offering custodial services (which means taking care of the digital money for customers). This was also supported by the Government Accounting Office. The politicians’ letter encouraged the President to work with the SEC to cancel the rule, especially if he still intended to say no to their plan.

Even though the president had warned that he may say no, the plan was still passed by a big majority in both houses of Congress.

Earlier on Friday, Senator Ron Wyden of Oregon, a Democrat who supported the plan, said at a conference that the rule was unfair. He thought it set a different standard for digital money than other financial assets.

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