Regulation
‘I’ll go all out against the White House:’ Experts call for bipartisan support for sound policies because ‘cryptocurrency is pro-American values’
Crypto industry experts are calling for bipartisan support in regulating digital assets, emphasizing the need to work across party lines to establish strong 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 (SAB 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 crypto assets.
However, President Joe Biden has pledged to veto the resolution, complicating the eventual repeal of the policy.
Legislative push and threat of presidential veto
SAB 121, issued in 2022, requires companies holding 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 rulemaking process, a position supported by the Government Accountability Office.
President Biden expressed concerns that rescinding SAB 121 would harm efforts to protect crypto-asset investors and safeguard the financial system as a whole.
He said allowing the rule to be removed in this way would disrupt crucial regulatory work.
“A dozen Democrats joined the majority of Republicans in supporting the resolution, which far exceeded the simple majority needed to pass,” the Senate announced.
Despite this, the resolution did not obtain the supermajority required to override a presidential veto.
Bipartisan support and opposition
The Senate vote saw a dozen Democrats join the Republican majority, surpassing the simple majority needed to pass the bill but not enough to override a veto. The senator Cynthia Lummis (R-Wyo.), a prominent critic of SAB 121, called the bulletin a “disaster” and a failure in consumer protection.
“This is a victory for financial innovation and a clear rebuke of how the Biden administration and President Gary Gensler have treated crypto assets,” Lummis said.
Jake Chervinskylegal director at Variant Funds, Underlines 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 note the waning support for anti-crypto measures within key Democratic circles, and by the Blockchain Associationwhich highlighted the growing public awareness and voter support for cryptocurrency.
Adams, a crypto investor and entrepreneur, highlighted the shift in Democratic support by saying, “Warren & Gensler’s anti-crypto army is losing support from leading Democrats. The American people want an open Internet and the ability to use cryptography. Crypto should not be partisan. Pro-crypto, these are pro-American values.
Industry reactions
The Blockchain Association note the Senate’s overwhelming bipartisan vote to repeal SAB 121, signaling strong disapproval of the rule across political divides.
They stressed the importance of not punishing consumers who adopt new technologies and called on the administration to align with Congress and sign the repeal.
Ryan Selkisfounder and CEO of Cryptocurrency Messari, Express his intention to oppose Democrats in the White House and Senate not aligned with pro-crypto policies.
“I will fight hard against the Democrats in the White House and Senate who will not be appointed @SenGillibrand until after the election. This week has proven the value of this strategy for the entire group. I will back down against all those who renounce Gensler and Warren,” Selkis said. tweeted.
Looking forward
representative Kyle Flood (R-Neb.), one of the architects of the resolution, noted bipartisan opposition to SAB 121 and urged President Biden to reconsider his veto.
“The president should sign my resolution to ensure that the SEC reverses course and puts America on a path to growth in our digital financial future,” Flood said.
As Congress continues to tackle issues surrounding crypto, the implications of these regulatory developments will be the focus of Benzinga’s discussions. The future of digital assets event on November 19.
Industry leaders will discuss the future of digital financial innovation and evolving regulatory landscape.
Read next: Donald Trump’s election chances just jumped to 51% according to this crypto prediction market
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