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Biden vetoes bill that aims to ‘undermine’ SEC’s crypto authority
US President Joe Biden has vetoed a bill aimed at overturning a Securities and Exchange Commission (SEC) bulletin that sets accounting standards for companies that store cryptocurrencies.
In an official letter on May 31, Biden said, “This reversal of the SEC staff’s considered judgment in this way risks undermining the SEC’s broader authorities regarding accounting practices.” The bill seeks to repeal the SEC’s cryptocurrency accounting guidelines, which require institutions holding cryptocurrencies to record them as liabilities on their balance sheets.
“My administration will not support measures that jeopardize the well-being of consumers and investors,” Biden added. “To capitalize on the potential benefits and opportunities of cryptocurrency innovation, adequate guardrails that protect consumers and investors are needed.”
Earlier this month, both the House and The Senate voted in favor of repealing the SEC Staff Accounting Bulletin, known as SAB 121.
The guidance directs financial institutions that hold cryptocurrencies so that customers can keep the assets on their balance sheets, a measure that critics say complicates financial institutions’ involvement with crypto companies.
THE The House passed the measure by a vote of 228-182, overwhelmingly supported by Republicans, although 21 Democrats also voted in favor. A week later, the Senate voted 60-38, with several Democrats, including Senate Majority Leader Chuck Schumer of New York, supporting the measure.
A two-thirds majority of both houses of Congress is required to overturn a presidential veto.
Slap in the face or commendable?
Biden’s controversial decision was immediately met with criticism from the cryptocurrency industry.
“We are disappointed that the administrator chose to override the bipartisan majorities in both houses of Congress that recognized the harm created by SAB 121,” cryptocurrency advocacy group Blockchain Association said in a May 31 X. send.
Also Cody Carbone, policy manager at the Digital Chamber criticized the veto, describing it as “a slap in the face to innovation and financial freedom.”
The veto has also raised concerns within the crypto community, especially since it appears to contradict speculation that Biden’s campaign would engage crypto industry players to adopt a more pro-crypto stance.
“If it is true that the Biden campaign is communicating with thought leaders on cryptocurrency, I commend them. I have publicly encouraged them and the President not to make the mistake of conceding on this issue or ignoring its importance to the future of our nation. Cryptocurrencies are here to stay, and it is critical that we listen to BOTH candidates on their perspective and plans for how to integrate cryptocurrencies into our financial systems,” said Moe Vela, senior advisor at Unicoin and former senior advisor to Biden, in a statement at crypto.news
“Disappointed but not surprised by the SAB121 CRA veto, as I often say, silence is golden, because some positions once stated publicly end up being difficult to walk back,” Sheila Warren, CEO of Crypto Council, added.