Notes

Biden’s Crypto Veto Exposes Rift In Crypto Policy
As Coinatory reported, U.S. cryptocurrency news blocked a bill to nullify a directive from the SEC that establishes accounting standards for companies holding crypto assets. In a May 31 letter, Biden stressed that undoing the SEC’s decision risks undermining the SEC’s extensive powers over accounting standards. The bill sought to repeal the SEC’s crypto accounting rules, which mandate institutions holding cryptocurrency to list them as liabilities on their balance sheets.

Biden stated that his administration will not back initiatives that threaten the protection of consumers and investors. He highlighted the importance of appropriate guardrails to ensure consumer and investor safety, which are essential for harnessing the benefits and opportunities from crypto innovation.

Earlier this month, both chambers of Congress voted to repeal the SEC’s bulletin, SAB 121. This directive requires financial firms holding crypto to ensure that customers’ assets are reflected in their accounts, a provision critics argue hinders financial institutions' engagement in the crypto sector. The House approved the bill with a 228-182 vote, largely supported by Republicans, though 21 Democrats also voted in favor. A week later, the Senate voted 60 to 38, with several Democrats, including Senate Majority Leader Chuck Schumer of New York, supporting the measure. It requires a two-thirds majority in both houses to overturn a presidential veto in both chambers of Congress.


The cryptocurrency sector promptly reacted to the President’s decision. The Blockchain Association, a crypto advocacy group, expressed disappointment, that the administration overruled bipartisan consensus in both houses who acknowledged the harm of SAB 121. Cody Carbone, Chief Policy Officer at the Digital Chamber, criticized the veto, calling it a setback to innovation and financial freedom.

The veto has sparked concern in the crypto community, amid speculations of Biden’s campaign engaging with crypto leaders to take a more pro-crypto approach. Moe Vela, Senior Advisor at Unicoin and former advisor to Biden, stated that he commends Biden’s campaign if they are engaging with crypto leaders. Vela encouraged the administration and the President to see the significance of cryptocurrency for the nation's future, emphasizing that crypto is here to stay and both presidential candidates need to articulate their plans for integrating crypto into financial systems.

Sheila Warren, CEO of the Crypto Council, added that the veto was disappointing but unsurprising, observing that some publicly stated positions are difficult to walk back.

To conclude, Biden’s veto of the bill against SEC’s SAB 121 has created a significant debate within the cryptocurrency industry and among lawmakers, highlighting the ongoing tension between regulatory oversight and innovation in the crypto space.

Here's my website: https://coinatory.com/cryptocurrency-news/biden-vetoes-bill-challenging-secs-crypto-oversight-19465/