Notes

SEC Cryptocurrency Regulations Upheld by President Biden's Decision
I just read on Coinatory that President Joe Biden has rejected a move by the legislative branch to reverse a SEC bulletin. This announcement defines guidelines for companies that hold cryptocurrency.

In a letter dated May 31st, the President stated, “This cancellation of the careful evaluation of SEC personnel risks undercutting the SEC’s broader authorities regarding accounting practices.” The legislation sought to nullify the SEC’s cryptocurrency accounting guidelines, which mandate that institutions holding crypto assets must record them as liabilities on their financial statements. Biden's government is clearly aiming to maintain strict controls, highlighting the necessity of safeguarding consumers and investors.

Earlier this month, both the House of Representatives and Congress voted to overturn the SEC’s SAB 121, known as the bulletin. This directive demands banks custodying crypto to make certain that customers’ assets are recorded on their financial statements. Opponents argue that this complicates banks' engagement with cryptocurrency firms. The House of Representatives ratified the bill with a 228-182 vote, supported primarily by Republicans, though some members of the Democratic party also backed the measure. A week after, the upper chamber passed it with a 60 to 38 vote, with several Democrats, including the Majority Leader, backing the bill. However, overturning a presidential veto requires a large majority from both chambers, a challenging feat.

The response from the digital currency community was quick and critical. For instance, the digital currency alliance expressed disappointment, saying, “We’re disappointed that the administration chose to negate bipartisan majorities in both legislative bodies who recognized the harm created by SAB 121.” Similarly, Veto , policy head at the Digital Chamber of Commerce, described the decision as “a direct affront to tech advancement and financial liberty.”

Rumors have emerged regarding the President's stance on cryptocurrency. There are reports that his campaign has been consulting crypto industry figures to support crypto innovation. Moe Vela, Senior Advisor to Unicoin and a former Senior Advisor to Biden, commented on this, saying, “If it’s true that the administration is communicating with crypto innovators, I support this. I’ve publicly encouraged them and the President not to give up on this matter nor to ignore its importance to the future of our nation. Cryptocurrency is here to stay, and it’s crucial that we listen to both political contenders on their views and strategies for how to include crypto in financial regulations.”

The presidential rejection has clearly sparked worries within the digital currency sector. Sheila Warren, CEO of Crypto Council, noted, “Frustrated but unsurprised by the denial of the CRA, as I often say, restraint is beneficial, because some positions once expressed are hard to retract.”

In closing, Biden's decision on the measure to overturn the SEC's SAB 121 shows a clear commitment on upholding strict controls over the crypto industry. While it underscores the administration's commitment to ensuring investor safety, it also ignites further controversy on how to encourage progress without undermining oversight.


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