Regulation
President Biden’s surprise veto saves SEC crypto leadership
President Joe Biden shook the financial world with his recent veto of a congressional resolution to overturn the SEC’s controversial Staff Accounting Bulletin 121 (SAB121).
This move has sparked a debate about the future of digital asset regulation and its impact on financial institutions. What does this mean for the cryptocurrency market and its stakeholders?
A key moment in cryptocurrency regulation
President Biden’s veto is significant in the ongoing fight over cryptocurrency regulation. Despite bipartisan support to Congress to repeal SAB121, the President stood firm, citing the need for robust consumer and investor protections.
Issued by SEC in 2022, SAB121 has faced heavy criticism from the cryptocurrency industry and banks. They argue that this makes offering digital asset services too expensive. Banks say the guidelines prevent them from expanding their digital asset services due to the high costs involved.
Understanding the veto
The resolution to repeal SAB121 received significant support, including the votes of 11 Democrats in the Senate and a 228-182 majority in the House. Repeal supporters argue that the SEC guidelines limit Americans’ ability to store digital assets in traditional banks.
In his veto statement, President Biden underlined the need to protect consumers and investors. He stated,
“My administration will not support measures that jeopardize the well-being of consumers and investors.”
He also highlighted the importance of responsibly safeguarding the benefits of crypto-asset innovation and expressed his willingness to work with Congress on balanced digital asset regulations.
Moving forward with cryptocurrency regulation
Previously, the White House opposed House-passed legislation aimed at creating a regulatory framework for digital assets, citing a lack of adequate consumer and investor protections. However, the administration has shown a willingness to negotiate future regulations.
Legislators’ reaction: What happens next?
Member of the US House of Representatives Mike Flood expressed disappointment with President Biden’s veto, but stressed that this is not the final word. Flood noted that digital assets and cryptocurrency are here to stay and are crucial to America’s financial future.
Flood stressed that banks, long trusted as custodians of financial assets, should work with regulators to offer similar services for digital assets. He pledged to continue working with his colleagues to find ways to end SAB121 and counter SEC Chairman Gensler’s anti-crypto stance.
Read also: Will the FIT21 Cryptocurrency Bill be advanced by 2025? Rep. McHenry reveals a bold prediction
What is your opinion on Biden’s courageous stance? We want to hear from you!