Regulation
Biden Opposes Congress on Cryptocurrencies, a Divisive Veto!
7h00 ▪ 3 minute read ▪ by Fenelon L.
US President Joe Biden has vetoed a congressional resolution aimed at invalidating the controversial “Staff Accounting Bulletin 121” (SAB121) of the Securities and Exchange Commission (SEC). This unexpected decision reignites the debate on cryptocurrency regulation and its impact on financial institutions.
SAB121: A controversial directive at the center of the debate
Published by the SEC in March 2022, the SAB121 requires banks and other entities that hold cryptocurrencies on behalf of their customers to account for them as liabilities on their balance sheets.
Since its publication, this directive has sparked strong opposition from the cryptocurrency industry and banking sector, who argue that it imposes exorbitant compliance costs, thus hindering the provision of digital asset-related services.
In response, members of Congress from both parties introduced a resolution seeking to repeal SAB121. On May 9, 2024, 11 Democratic Senators supported this resolution, and the House of Representatives passed it by a vote of 228 to 182.
However, President Biden vetoed this resolution, citing in its statement the need to effectively protect consumers and investors while preserving the benefits of innovation in the field of cryptocurrencies.
Critics of SAB121 from both parties in Congress argue that this measure, still in effect today, limits Americans’ ability to keep their crypto assets in traditional banks.
Towards a complete regulatory framework
Biden’s veto does not end the debate cryptographic regulation. The Administration has expressed its willingness to work with Congress to develop a comprehensive and balanced regulatory framework for digital assets.
Lawmakers like Rep. Mike Flood, disappointed by the president’s decision, make evident the crucial role of cryptocurrencies in the financial future of the United States. They ask banks, as trusted custodians, to work hand-in-hand with regulators to offer tailored services for digital assets, similar to those offered for other asset classes.
As the debate continues, it becomes clear that finding the right balance between promoting innovation and protecting investors will be essential. The cryptocurrency industryRegulators and legislators will need to join forces to create a regulatory environment conducive to the responsible and sustainable growth of this ever-evolving sector.
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Fenelon L.
Passionate about Bitcoin, I want to explore the meanings of blockchain and cryptocurrencies and participate in my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be relied upon as investment advice. Do your research before making any investment decisions.