Regulation
When will the House of Representatives consider the cryptocurrency regulation bill that Biden vetoed?
The U.S. House of Representatives is set to re-evaluate a bill on July 9 or later which had already faced a presidential veto in May. The bill seeks to repeal the controversial Securities and Exchange Commission (SEC) directive, known as Staff Accounting Bulletin No. 121 (SAB 121). This directive, which has ruffled feathers, advises financial institutions to hold cryptocurrencies on behalf of their customers to treat these assets as if they were their own on their balance sheets.
Biden’s veto on cryptocurrencies under threat
President Joe Biden decisively exercised its veto power against the bill, citing concerns about potential constraints on the SEC’s regulatory capabilities. Such limitations, Biden said, could undermine the ability to put in place the safeguards needed to manage future financial landscapes and ensure consumer protection.
His veto, expressed in a statement from the White House, underscored the administration’s stance against jeopardizing the well-being of consumers and investors, marking a significant moment of discord between the executive branch and cryptocurrency advocates.
What level of support does crypto invoice need?
The bill originally garnered bipartisan support, passing both the House and Senate. The challenge now is to muster a two-thirds majority in both houses to override the president’s veto. — a feat that is easier said than done in a politically divided environment. Proponents of the measure argue that SAB 121 unnecessarily complicates and discourages traditional financial entities from providing cryptocurrency custody services, potentially stifling innovation and investment in the sector.
The SEC’s introduction of SAB 121 in March 2022 has met with strong opposition from various quarters, including House Majority Leader Tom Emmer called the move “illegal” and a “violation” of the SEC’s statutory mandate. Critics say the guidelines go too far in imposing strict requirements on how banks must handle crypto assets, which could chill the booming cryptocurrency custody market.