Regulation
Biden vetoes bipartisan bill to overturn SEC cryptocurrency custody rules
Monday, President Joe Biden has vetoed a bipartisan resolution aimed to overturn the Securities and Exchange Commission (SEC) cryptocurrency custody guidelines. The resolution passed both the House and Senate and sought to invalidate the SEC’s Staff Accounting Bulletin (SAB) 121.
Presidential veto explained
In a letter to the House of Representatives, Biden highlighted the importance of SEC guidelines in protecting investors. “SAB 121 reflects the technical opinions of the SEC staff regarding the accounting obligations of certain companies that safeguard crypto-assets,” Biden said. He stressed that the resolution would “inappropriately limit the SEC’s ability to establish appropriate barriers and address future issues.”
Biden further clarified, “This reversal of the SEC staff’s considered judgment risks weakening the SEC’s broader authorities regarding accounting practices. My Administration will not support measures that jeopardize the well-being of consumers and investors.”
Legislative context
The Republican-led legislation has garnered considerable bipartisan support. It passed the House by a vote of 228-182, including support from 21 Democrats. The Senate passed the bill by a vote of 60 to 38, with eleven Democrats supporting the measure.
Political and regulatory context
This veto comes amid increased scrutiny over cryptocurrencies such as Bitcoin (CRYPTO: Bitcoin) AND Ethereum (CRYPTO: ET). The Biden administration’s stance on digital assets is being closely monitored, especially with the 2024 election on the horizon. Voters are increasingly taking candidates’ positions on cryptocurrency regulation into consideration.
Meanwhile, former president Donald Trump, Biden’s expected Republican challenger, strongly supports the cryptocurrency industry. Recently, Trump began accepting cryptocurrency donations and pledged to support investors’ right to self-custodial their assets.
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Image: President Joe Biden. Photo via Shutterstock
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