Regulation
President Biden’s Surprise Veto Saves SEC Crypto Guidance
President Joe Biden has vetoed a congressional resolution to invalidate the SEC’s controversial Staff Accounting Bulletin 121 (SAB121). The move has sparked a debate about the future of digital asset regulation and its impact on financial institutions. What does this mean for the crypto market and its stakeholders?
Biden cancels congressional resolution
President Biden’s veto is significant in the ongoing fight over cryptocurrency regulation. Despite bipartisan support in Congress to repeal SAB121, the President stood firm, citing the need for strong protections for consumers and investors.
Issued by the SEC in 2022, SAB121 faced heavy criticism from the crypto industry and banks for making it prohibitive to offer digital asset services.
Since his introduction, SAB121 has been a controversial issue. Banks say these guidelines prevent them from expanding their digital asset services because the costs are too high.
The congressional resolution to repeal SAB121 passed with notable support from 11 Democrats in the Senate and by a vote of 228-182 in the House. Supporters of the resolution say the SEC guidelines limit Americans’ ability to store digital assets at traditional banks, thereby limiting their options.
Biden’s justification
In his veto statement, President Biden stressed the need to protect consumers and investors, saying: “My administration will not support measures that endanger the well-being of consumers and investors. »
He highlighted the importance of appropriately and responsibly preserving the benefits of crypto-asset innovation. Biden also expressed his willingness to work with Congress to create a comprehensive and balanced regulatory framework for digital assets.
The White House previously opposed House-passed legislation to create a regulatory framework for digital assets, arguing that it lacked adequate protections for consumers and investors. However, the administration did not threaten a full veto, indicating an openness to negotiating future regulations.
Reaction from lawmakers
In a recent tweet, U.S. House of Representatives Member Mike Flood expressed disappointment with President Biden’s veto of SAB 121, but emphasized that it was not the final word. He said digital assets and cryptocurrencies are here to stay and are crucial to America’s financial future.
Flood emphasized that banks, which have long been America’s trusted custodians, should work with regulators to provide the same services for digital assets as they do for other asset classes.
He pledged to continue working with his colleagues to find ways to end SAB 121 and counter Chairman Gensler’s anti-crypto agenda.
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