Notes

Biden's Veto Impacts Crypto Industry
I recently saw an article on Coinatory that detailed that U.S. President Joe Biden rejected a bill to reverse an SEC bulletin. attend establishes accounting standards for firms that custody cryptocurrency, requiring them to document these assets as liabilities on their balance sheets.

In a letter dated May 31, Biden highlighted that overturning the SEC's considered judgment could weaken the commission's broader power on accounting practices. The proposed bill sought to cancel the SEC's cryptocurrency accounting guidelines, which have been contentious since their introduction. These guidelines, particularly SAB 121, mandate that financial institutions that hold crypto assets reflect customers' assets on their balance sheets, a requirement challenged for complicating the participation of financial institutions with crypto companies.

Biden's team has been transparent about its stance on consumer and investor protection. In his letter, Biden stated that his administration would not endorse measures that could endanger the well-being of consumers and investors. He emphasized the importance for proper guardrails to defend consumers and investors, which are vital to harness the potential benefits and opportunities of crypto-asset innovation.

Earlier in May, both the House and Senate decided to rescind the SEC's staff accounting bulletin. The House approved the measure with a 228-182 vote, mainly supported by Republicans, although 21 Democrats also voted in favor. A week later, the Senate approved 60 to 38, with several Democrats, including Senate Majority Leader Chuck Schumer, backing the measure. However, overturning a presidential veto needs a two-thirds majority in both houses of Congress, a challenging threshold to meet.

Biden's veto has elicited strong reactions from the cryptocurrency industry. The Blockchain Association, a crypto advocacy group, voiced disappointment, noting that the administration chose to dismiss bipartisan majorities in both Houses of Congress who recognized the harm created by SAB 121. Cody Carbone, Chief Policy Officer at the Digital Chamber, condemned the veto, calling it "a slap in the face to innovation and financial freedom."

Concerns have been brought up within the crypto community, particularly in light of rumors that Biden's campaign has been engaging with crypto industry leaders to take on a more pro-crypto stance. Moe Vela, Senior Advisor to Unicoin and former Senior Advisor to Biden, praised the potential engagement but warned against ignoring the importance of crypto to the nation's future. He stressed that crypto is here to stay and stressed the need for both presidential candidates to articulate their plans for integrating crypto into the financial system.

Sheila Warren, CEO of the Crypto Council, also spoke on the veto, expressing disappointment but not surprise. She observed that some positions, once publicly stated, can be difficult to retract, implying that the administration's stance on SAB 121 might be more about long-term strategic positioning than immediate policy changes.


This event underscores the ongoing conflict between regulatory bodies and the cryptocurrency industry. The discussion over SAB 121 underscores the challenges of incorporating crypto-assets into traditional financial systems while maintaining consumer and investor protection. As Coinatory noted, the veto by Biden is a significant moment in the changing landscape of cryptocurrency regulation in the United States, showing broader concerns about innovation, financial stability, and regulatory authority.

My Website: https://coinatory.com/cryptocurrency-news/biden-vetoes-bill-challenging-secs-crypto-oversight-19465/