President Joe Biden has vetoed the HJRes. 109, a congressional resolution that would have overturned the Securities and Exchange Commission's current approach toward banks and cryptocurrencies.
Specifically, the resolution focused on SEC Staff Accounting Bulletin 121, which lays out rules for how banks can handle customers' crypto assets; In fact, they must treat those assets as liabilities.
“SAB 121 reflects considered technical opinions of the SEC staff regarding the accounting obligations of certain companies that safeguard crypto assets,” Biden said in a declaration. “By invoking the Congressional Review Act, this Republican-led resolution would inappropriately limit the SEC's ability to establish appropriate guardrails and address future issues.”
Biden went on to say that his administration “will not support measures that jeopardize the well-being of consumers and investors.”
HJRes. 109 passed with mostly Republican support, but 21 Democrats supported the resolution in the House, and Senate Majority Leader Chuck Schumer was among Democrats who supported it in the Senate.
The president had He previously indicated his intention veto the resolution, while Rep. Mike Flood (the Republican congressman who sponsored HJRes. 109 in the House) argument“It is clear that there is overwhelming opposition to SAB 121 and I urge President Joe Biden to reconsider his previous statement of intent to veto the resolution.”
Organizations opposing SAB 121 include the American Bankers Association and other financial industry lobby groups, as well as the crypto industry advocacy group. Support cryptocurrencies.
“SAB 121 effectively prevents regulated banking organizations from offering custody of digital assets at scale, as it treats the assets as if they were owned by a banking organization rather than simply being held in custody,” the ABA and other industry groups said in an open letter to president biden.
The White House announcement left the door open to new negotiations on cryptocurrency regulation.
“My administration looks forward to working with Congress to ensure a comprehensive and balanced regulatory framework for digital assets, building on existing authorities, that will promote responsible development of digital assets and payments innovation and help reinforce the leadership of United States in the global financial system. Biden said.
