Regulation
“I will go completely against the White House:” experts urge bipartisan support for solid policies because “pro-crypto is pro-American values”
Crypto industry experts call for bipartisan support in regulating digital assets, underscoring the need to work across party lines to establish sound crypto policies, as the US Senate voted 60-38 on Thursday to overturn the controversial Securities and Exchange Commission (SEC) policy known as Staff accounting bulletin no. 121 (BRS 121).
What happened: This action follows a similar vote by the House of Representatives, marking a bipartisan effort to challenge the SEC’s approach to regulating cryptocurrencies.
However, President Joe Biden has pledged to veto the resolution, complicating potential repeal of the policy.
Legislative push and threat of presidential veto
SAB 121, issued in 2022, requires companies that hold customers’ cryptocurrencies to record them on their balance sheets, a requirement that could have serious capital implications for banks dealing with crypto customers.
Critics argue that this policy was implemented without the necessary regulatory process, a position supported by the Government Accountability Office.
President Biden expressed concern that overturning SAB 121 would undermine efforts to protect crypto-asset investors and safeguard the broader financial system.
He said allowing the rule to be removed in this way would disrupt critical regulatory work.
“A dozen Democrats joined the majority of Republicans in supporting the resolution, which easily exceeded the simple majority needed to pass it,” the Senate announced.
Despite this, the resolution did not reach the qualified majority needed to override the presidential veto.
Bipartisan support and opposition
The Senate vote saw a dozen Democrats join the majority of Republicans, exceeding the simple majority needed to pass but not enough to override a veto. Sen. Cinzia Lummis (R-Wyo.), a prominent critic of SAB 121, called the bulletin “a disaster” and a failure to protect consumers.
“This is a victory for financial innovation and a clear rebuke to the way the Biden administration and President Gary Gensler have treated crypto assets,” Lummis said.
Jake ChervinskyLegal Director at Variant background, highlighted the bipartisan nature of the issue, stating, “The best path to good crypto policy is to embrace both sides, not choose one over the other.”
This sentiment was echoed by Ryan Sean AdamsWho noticed declining support for anti-cryptocurrency measures within mainstream Democratic circles and by the Blockchain Associationwhich highlighted the growing public awareness and support for cryptocurrency among voters.
Adams, a cryptocurrency investor and entrepreneur, highlighted the shift in Democratic support by saying, “Warren & Gensler’s anti-crypto currency army is losing the support of leading Democrats. The American people want an open Internet and the ability to use cryptocurrencies Cryptocurrencies should not be partisan. Pro-cryptocurrencies are pro-American values.”
Industry reactions
The Blockchain Association noticed the Senate’s overwhelming bipartisan vote to repeal SAB 121, signaling strong disapproval of the law despite political divisions.
They stressed the importance of not punishing consumers for adopting new technologies and called on the administration to align with Congress and sign the repeal.
Ryan SelkisFounder and CEO of Crypto Messengers, expressed his intent to antagonize White House and Senate Democrats not in line with pro-cryptocurrency policies.
“I will go all-out against White House and Senate Democrats who I will not nominate @SenGillibrand until after the election. This week demonstrated the value of that strategy for the entire group. I will back down anyone who gives up on Gensler and Warren” , Selkis tweeted.
Looking forward
Representative. Kyle Flood (R-Neb.), one of the resolution’s architects, highlighted bipartisan opposition to SAB 121 and urged President Biden to reconsider his veto.
“The President should sign my resolution to ensure the SEC reverses course and puts America on the path to growing our digital financial future,” Flood said.
As Congress continues to grapple with cryptocurrency issues, the implications of these regulatory developments will be a focal point in Benzinga’s debate The future of digital assets event on November 19th.
Industry leaders will discuss the future of digital financial innovation and the evolving regulatory landscape.
Image: Shutterstock
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