Bitcoin
President Biden Vetoes Pro-Crypto Resolution, Defends SEC Judgment
Capping a dizzying week in crypto and political spheres, US President Joe Biden on Friday notified Congress that he had vetoed a bipartisan resolution that sought to roll back a Security and Exchange Commission that critics said discouraged banks to offer cryptographic custody services.
“This reversal of the SEC staff’s considered judgment risks undermining the SEC’s broader authorities regarding accounting practices.” read the warning of the White House. “My Administration will not support measures that jeopardize the well-being of consumers and investors.
“Therefore, I veto this resolution,” concludes Biden.
The battle is over Personnel Accounting Bulletin (SAB) 121—which is separate from the Financial Technology and Innovation for the 21st Century Act, or FIT21-it is fermenting for more than a year. Biden had signaled its intention to veto the legislation on the day it was approved by the U.S. House of Representatives on a bipartisan vote of 228-182.
The Senate followed suit with its complementary resolutionwith 12 Democrats joining a majority of Republicans in voting to repeal the policy, 60 to 38.
In his veto notice, Pres. Biden faulted the bill for citing the Congressional Review Act as the basis for the oversight lawmakers claimed in their objections — as he did when expressed opposition for the first time to the account.
“This Republican-led resolution would unduly restrict the SEC’s ability to establish appropriate safeguards and address future issues,” the president wrote today.
On May 8, he stated that “limiting the SEC’s ability to maintain a comprehensive and effective financial regulatory framework for cryptoassets would introduce substantial financial instability and uncertainty into the market.”
Biden signaled that he would be open to working with Congress on a “balanced regulatory framework for digital assets”. This is the ostensible objective of the FIT21 Law, which Biden also opposes—but he did not threaten to veto it, as he did with SAB 121.
The FIT21 Act creates a federal framework for the regulation of digital assets and has been approved by the US House last week with the support of 71 Democrats and all but three Republicans – demonstrating that the issue is strong enough to move lawmakers across party lines.
The announcement comes one day after former President Donald Trump – and supposed Republican rival in the upcoming presidential elections in November – was convicted in a New York court on all 34 criminal charges against him. Trump has recently turned to courting crypto voting as it becomes a increasingly potent campaign issue.