President Joe Biden vetoed HJRes. 109, a proposed congressional resolution that could have overturned the Securities and Exchange Commission’s current approach to banking and cryptocurrencies.
Specifically, the resolution targets the SEC’s Staff Accounting Bulletin 121, which provides guidelines for how banks should handle their customers’ crypto assets, effectively requiring them to treat those assets as liabilities. Banking groups have criticized this approach, saying it makes it prohibitively expensive for banks to handle crypto assets, but regulators argue it’s necessary to protect investors, especially after the collapse of well-known crypto firms like FTX.
“SAB 121 reflects the SEC staff’s technical opinion regarding certain companies’ accounting obligations protecting crypto assets,” Biden said. statement“By invoking the Congressional Review Act, this Republican-led resolution would improperly limit the SEC’s ability to develop appropriate guidelines and address future issues.”
Biden also said his administration “will not support measures that put the well-being of consumers and investors at risk.”
HJRes. 109 passed with mostly Republican support, but 21 Democrats sponsored the resolution in the House of Representatives and Senate Majority Leader Chuck Schumer was one of the Democrats who sponsored the resolution.
The President Previously expressed intentions While vetoing the resolution, Rep. Mike Flood, R-S.C., who introduced HJRes. 109 in the House, Claimed Biden should reconsider given the “overwhelming opposition to SAB 121.”
Groups opposed to SAB 121 include the American Bankers Association and other financial industry lobbying groups, as well as cryptocurrency industry advocacy groups. Supporting cryptocurrencies.
“SAB 121 effectively prohibits regulated banking organizations from offering large-scale digital asset custody because it treats assets as if they are owned by the banking organization rather than merely held in its custody,” the ABA and other industry groups said. An Open Letter to President Biden.
The White House announcement paves the way for further negotiations over cryptocurrency regulation.
“My administration is eager to work with Congress, building on existing authorities, to ensure a comprehensive and balanced regulatory framework for digital assets that will foster responsible development and payments innovation, and help strengthen U.S. leadership in the global financial system,” Biden said.
