Notes

SEC's SAB 121 Upheld by Biden: Crypto Industry Faces New Challenges
I recently stumbled upon an fascinating article on Coinatory discussing President Biden's veto in opposition to a bill reversing an SEC bulletin, that outlines accounting standards for institutions holding cryptocurrency. This move by Biden profoundly affects the digital currency market and highlights the administration's position on crypto regulation.

In an formal letter dated May 31, the President emphasized that annulling the SEC's guidance could undermine its broader control over accounting practices. The bill intended to nullify the SEC’s cryptocurrency accounting guidelines, mandating institutions holding crypto assets to account for them as liabilities on their balance sheets. Biden’s administration, underscoring consumer and investor protection, declined to endorse measures that could endanger their well-being. This stance highlights the importance of necessary protections to capitalize on the potential benefits of crypto-asset innovation.

Earlier in May , both the House and Senate approved measures to annul the SEC’s staff accounting bulletin, SAB 121. This directive requires financial institutions with crypto to guarantee customers’ assets are reflected on their balance sheets, a provision that critics argue complicates the participation of banks with crypto companies. The House approved the bill with a 228-182 vote, with strong Republican approval 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, annulling a 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 expected to hold, much to the frustration of the cryptocurrency industry.

The swift reaction from the crypto community was evident . The Blockchain Association showed discontent , noting that bipartisan majorities in both Houses recognized the harm created by SAB 121. Similarly, Cody Carbone, Chief Policy Officer at the Digital Chamber, denounced the decision 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, praised any potential engagement with cryptocurrency thought leaders, stressing the importance of including cryptocurrencies into our financial systems. He highlighted that crypto is here to stay and that it’s imperative to get insights from both presidential candidates on their plans for the sector’s future.

Sheila Warren, CEO of the Crypto Council, mentioned that she was unsurprised but disappointed by the veto. She noted the challenge of reversing publicly stated positions , suggesting that silence might have been a more strategic option in some cases.

In conclusion, Biden’s veto of the SEC bulletin reversal is a strong sign of the administration’s careful stance towards cryptocurrency regulation. While the move seeks to safeguard consumers and investors, it also raises significant questions about the future of crypto accounting standards and the broader regulatory landscape. As the debate continues, it will be interesting to see how these policies progress and what impact they will have on the expanding crypto industry. For Veto keeping up with the crypto space, staying informed about these developments is important, and Coinatory is a valuable resource for the latest updates.


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