President Biden has fulfilled his promise to veto legislation related to cryptocurrency regulation that recently passed through both the House and Senate.
The bill aimed to overturn guidance from the Securities and Exchange Commission (SEC), which stated that certain companies should classify crypto assets as liabilities on their balance sheets, even if they are only holding the assets on behalf of customers.
In a letter addressed to the House of Representatives, President Biden explained that removing this guidance would impede the SEC’s ability to implement safeguards and protect investors.
The President stated, “SAB 121 reflects the careful technical analysis conducted by SEC staff regarding the accounting obligations of firms that safeguard crypto assets. By invoking the Congressional Review Act, this resolution, led by the Republican Party, would inappropriately limit the SEC’s ability to establish appropriate guidelines and address future concerns.”
President Biden emphasized that such a reversal of the SEC staff’s careful judgment would undermine the SEC’s broader authority over accounting practices. He made it clear that his administration would not support measures that jeopardize the well-being of consumers and investors.
The President stressed the importance of implementing appropriate safeguards that protect consumers and investors while harnessing the potential benefits and opportunities of crypto asset innovation. He expressed his eagerness to collaborate with Congress in order to establish a comprehensive and balanced regulatory framework for digital assets. This framework would build upon existing authorities, promote responsible development in the digital asset and payment innovation sector, and solidify the United States’ leadership in the global financial system.
The legislation, which was led by Republicans, passed the House with a vote of 228 to 182, with the support of 21 Democrats. It passed the Senate with a vote of 60 to 38, with eleven Democrats in favor.
President Biden’s veto comes at a time when Bitcoin and cryptocurrency are receiving significant attention in the political and regulatory spheres.
Former President Trump recently started accepting crypto donations, pledging to support the industry and investors’ rights to self-custody their assets.
Meanwhile, the SEC made an unexpected decision to reverse its stance on Ethereum exchange-traded funds (ETFs), paving the way for their imminent launch.
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