Regulation
Joe Biden has vetoed a bill aimed at overturning the SEC’s accounting standards on cryptocurrencies
- Biden vetoes bill targeting SEC crypto rules, citing concerns about regulator.
- The cryptocurrency industry criticizes Biden’s decision, calling it a setback for innovation and financial freedom.
- The veto raises questions about Biden’s stance on cryptocurrency regulation and engagement with the industry.
US President Joe Biden has taken a decisive stand in the ongoing debate over cryptocurrency regulation by vetoing I count which aimed to overturn a Securities and Exchange Commission (SEC) regulation related to cryptocurrency accounting standards.
The regulation in question, known as SAB 121, establishes specific guidelines for companies that hold cryptocurrency assets, requiring them to record such assets as liabilities on their balance sheets.
Joe Biden supports SEC authority over accounting practices
In a official statement on May 31, President Biden emphasized the importance of maintaining the SEC’s authority over accounting practices, saying that a reversal of the SEC’s decision could potentially undermine broader regulatory efforts aimed at protecting consumers and investors.
Biden’s veto highlights his administration’s commitment to implementing regulatory measures that ensure the safety and stability of financial markets, while recognizing the potential benefits of cryptocurrency innovation.
As before reportedthe bill, which aimed to repeal the SEC’s accounting guidelines on cryptocurrency, had garnered bipartisan support in both the House and Senate.
However, although the House passed the measure by a vote of 228-182 and the Senate voted 60-38 to repeal it, the veto requires a two-thirds majority of both chambers to be overridden.
Backlash over Biden’s decision to veto the bill
The decision to veto the bill sparked immediate reactions from various quarters, particularly in the cryptocurrency industry.
Critics argue that the veto represents a setback for innovation and financial freedom, with some describing it as a “slap in the face” to those who support a more flexible regulatory approach.
The Blockchain Association, a major cryptocurrency advocacy group, expressed disappointment with the administration’s decision, highlighting the bipartisan consensus reached in both houses of Congress.
Likewise, Cody Carbone, policy manager at the Digital Chamber, veto denigratedhighlighting its potential chilling effect on innovation within the crypto space.
The veto has also raised concerns within the crypto community regarding the administration’s stance on cryptocurrency regulation.
Despite speculation that the Biden campaign would engage cryptocurrency industry stakeholders to adopt a more pro-crypto stance, the veto suggests a different approach.
In response to the veto, Moe Vela, senior advisor at Unicoin and former senior advisor to Biden, called for a more nuanced discussion on the integration of cryptocurrencies into the financial system, urging both candidates to articulate their perspectives and plans for the future of regulation cryptographic.
Sheila Warren, CEO of the Crypto Council, expressed disappointment with the veto, suggesting that publicly stated positions on cryptocurrency regulation may be difficult to walk back once articulated.
As the debate over cryptocurrency regulation continues in the United States, all eyes are now on both houses to see if they can reach a two-thirds majority and overturn the president’s veto.