Notes

President Focuses on Investor Safety with Crypto Legislation Veto
According to Coinatory, U.S. President Joe Biden has vetoed a bill to nullify a directive from the SEC setting guidelines for firms that custody cryptocurrency. Dated May 31, an official letter from Biden the President noted that overturning the considered judgment of SEC staff could undercut the broader authorities of the SEC over accounting standards. The bill sought to repeal the SEC’s crypto accounting rules, which require firms holding cryptocurrency to record them as liabilities in their accounting records.

The President stated that his administration would not support any measures jeopardizing consumer and investor well-being. He highlighted the importance of appropriate guardrails to ensure consumer and investor safety, which are essential for harnessing the potential benefits and opportunities from crypto innovation.

Earlier in the month, both houses of Congress voted in favor of repealing the SEC’s SAB 121. This guidance requires financial institutions holding cryptocurrency to ensure that customers’ assets are reflected in their accounts, a guideline critics say complicates financial institutions’ involvement with cryptocurrency firms. crypto news approved the bill with a 228-182 vote, mostly backed by Republicans, though 21 Democrats also voted in favor. The Senate then voted 60 to 38 a week later, with several Democrats, including Senate Majority Leader Chuck Schumer of New York, supporting the measure. Overturning a presidential veto requires a two-thirds majority in both chambers of Congress.

The cryptocurrency sector promptly reacted to Biden's veto. Crypto advocacy group the Blockchain Association expressed disappointment, over the administration's decision to overrule bipartisan majorities 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 assume a pro-crypto position. Moe Vela, a Senior Advisor to Unicoin and former Biden advisor, remarked that if it’s true that the Biden campaign is communicating with cryptocurrency thought leaders, it is commendable. Vela urged the administration and Biden to understand the importance of crypto to the nation’s future, stating 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 Crypto Council, added that she found the veto disappointing but not unexpected, observing that some publicly stated positions are difficult to walk back.


In summary, Biden’s veto of the legislation to reverse SEC’s SAB 121 has sparked considerable debate within the crypto industry and lawmakers, underscoring the tension between regulatory control and crypto innovation.

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