President Biden’s Crypto Veto: What It Means for Investors and Innovation
President Joe Biden has vetoed a resolution that sought to overturn the U.S. Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) №121. Biden stated that he will not support measures that jeopardize the well-being of consumers and investors, emphasizing the importance of maintaining the SEC’s authority over accounting practices.
The Controversial Decision
The decision was immediately met with criticism from the cryptocurrency industry. The Blockchain Association expressed disappointment, highlighting that bipartisan majorities in both Houses of Congress recognized the harm created by SAB 121. They argued that challenging the guidelines would undermine the SEC’s authority.
SEC Guidelines and Backlash
The SEC’s guidelines, set to take effect on April 11, require institutions that custody crypto assets to record crypto holdings as liabilities on their balance sheets. This decision has been met with considerable backlash from both the crypto community and lawmakers.
Congressional Response
Lawmakers in the House of Representatives voted to repeal the SEC’s guidance by a margin of 228 to 182, passing the bill to the Senate. Senators echoed the House vote and elected to repeal SAB-121 with a significant margin of 60–38 votes.
Reaction from the Crypto Community
The wider crypto community expressed their frustrations on social media, arguing that the decision stifles innovation and hinders the industry at a critical time. Cody Carbone, Chief Policy Officer of the Digital Chamber, called the decision “a slap in the face to innovation and financial freedom.” Ripple CEO Brad Garlinghouse added that the move from the White House is incredibly disappointing at a pivotal moment for the industry.
President Biden remains firm in his stance, prioritizing the protection of consumers and investors while reinforcing the SEC’s regulatory authority.
