Biden turns against cryptocurrencies and uses his power to support the SEC

President Joe Biden vetoed a congressional resolution to repeal the Securities and Exchange Commission's Staff Accounting Bulletin 121 (SAB 121), furthering the administration's commitment to strong financial regulation.

The resolution, which received significant support from Republicans and some Democrats, passed the House and Senate on May 16.

Biden veto maintains SEC oversight of cryptocurrencies

SAB 121, introduced in March 2022, requires financial institutions to report their customers' digital assets. Critics say the rule imposes heavy operational and financial burdens on businesses dealing with cryptocurrencies. Sen. Cynthia Lummis, a key supporter of the resolution, argued that SAB 121 puts consumer assets at risk in bankruptcy by placing them on institutional balance sheets.

Facing backlash from crypto industry leaders and many lawmakers, Cancel Congressional SAB 121. The House voted first, with 228 members favoring repeal and 182 opposing it. A week later, the Senate voted 60-38 to repeal the rule. However, more votes than this number were required to prevent a presidential veto.

And in Statement accompanying the document, he emphasized Biden His administration will not support any measures that could harm consumers and investors.

"By invoking the Congressional Review Act, this Republican-led resolution will inappropriately limit the SEC's ability to establish appropriate safeguards and address future cases. Reversing the considered judgment of the SEC staff in this way risks undermining the SEC's broader powers with respect to accounting practices." my administration will not support measures that jeopardize the well-being of consumers and investors.

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Reactions to Biden's veto have been mixed within the crypto community. Some see it as a necessary step to protect investors, while others see it as an obstacle to financial innovation.

“The SEC's actions barring highly regulated U.S. financial firms from accessing custody services for Bitcoin hinder financial innovation and competitiveness. This could incentivize companies to relocate to countries with more favorable regulations, leading to a loss of American capital, talent and technology these restrictions limit access to financial innovations and investment diversification, putting them at a disadvantage compared to those in other countries,” said Manuel Ferrari, co-founder of Money. On Chain and MimLABS, at BeInCrypto.

Despite his veto, Biden expressed his willingness to work with Congress on new legislation relating to the digital asset market, emphasizing the need for measures to protect investors. This decision highlights the debate over how organize Cryptocurrency sector with a balance between innovation and consumer security.