Notes

Crypto Community Disappointed by Biden's Veto on SEC Guidelines
I came across an fascinating article on Coinatory regarding President Biden's veto in opposition to a bill reversing an SEC bulletin, that outlines accounting standards for firms that custody cryptocurrency. This action by Biden profoundly affects the cryptocurrency sector and highlights the administration's approach towards crypto regulation.

In an formal letter dated May 31, the President emphasized that annulling the SEC's guidance could weaken its broader authority on accounting practices. The bill intended to nullify the SEC’s cryptocurrency accounting guidelines, requiring institutions with crypto assets to account for them as liabilities on their balance sheets. Biden’s administration, emphasizing consumer and investor protection, declined to endorse measures that could endanger their well-being. This stance highlights the importance of proper safeguards to harness the advantages of crypto-asset innovation.

At the beginning of May , both the House and Senate passed votes to overturn the SEC’s staff accounting bulletin, SAB 121. This regulation requires financial institutions with crypto to make sure customers’ assets are reflected on their balance sheets, a provision that critics argue complicates the involvement of financial institutions with crypto companies. The House endorsed the legislation with a 228-182 vote, with significant backing from Republicans and 21 Democrats in favor . A week later, the Senate passed it with a 60-38 vote, with key Democratic endorsements, including Senate Majority Leader Chuck Schumer.

However, overturning a presidential veto is no easy task , as it requires a two-thirds majority from both houses of Congress. This legislative hurdle ensures that Biden’s veto is likely to stand , much to the disappointment of the cryptocurrency industry.


The swift reaction from the crypto community was evident . The Blockchain Association voiced dissatisfaction, stating that bipartisan majorities in both Houses acknowledged the issues created by SAB 121. Similarly, Cody Carbone, Chief Policy Officer at the Digital Chamber, opposed the action as a hindrance to progress .

The veto triggered worries within the crypto community, especially in light of speculations that Biden’s campaign has been interacting with crypto industry leaders to adopt a more pro-crypto stance. Moe Vela, Senior Advisor to Unicoin and former Senior Advisor to Biden, commended any potential engagement with cryptocurrency thought leaders, emphasizing the importance of incorporating digital currencies into our financial systems. He underscored that crypto is here to stay and that it’s imperative to listen to both presidential candidates on their plans for the sector’s future.

Sheila Warren, CEO of the Crypto Council, mentioned that she was disappointed but not surprised by the veto. She highlighted the challenge of reversing publicly stated positions , suggesting that staying quiet might have been wiser in some cases.

In conclusion, Biden’s veto of the SEC bulletin reversal is a evident example of the administration’s measured strategy towards cryptocurrency regulation. While the move intends to shield consumers and investors, it also raises significant questions about the future of crypto accounting standards and the broader regulatory landscape. As cryptocurrency news continues, it will be interesting to see how these policies develop and what impact they will have on the expanding crypto industry. For anyone keeping up with the crypto space, staying updated about these developments is essential , and Coinatory is a reliable outlet for the latest updates.

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