Notes

Biden's Stance on Crypto Legislation: Veto Explained
I recently stumbled upon an intriguing piece on Coinatory about Biden's decision to veto against a legislative attempt to reverse an SEC bulletin, setting forth accounting standards for companies holding cryptocurrency. This action by Biden has significant implications for the digital currency market and showcases the administration's approach towards crypto regulation.

In an statement dated May 31, the President highlighted that overturning the SEC's decision could jeopardize its broader mandate regarding accounting practices. The bill aimed to repeal the SEC’s cryptocurrency accounting guidelines, mandating institutions that hold crypto assets to list them as liabilities on their balance sheets. Biden’s administration, underscoring consumer and investor protection, declined to endorse measures that could compromise their well-being. This stance underscores the importance of appropriate guardrails to capitalize on the opportunities of crypto-asset innovation.

Earlier this month, both the House and Senate approved measures to annul the SEC’s staff accounting bulletin, SAB 121. This regulation mandates financial institutions that hold crypto to guarantee customers’ assets are reflected on their balance sheets, a provision critics say complicates the participation of banks with crypto companies. The House approved the bill with a 228-182 vote, with substantial Republican support and 21 Democrats supporting it. A week later, the Senate followed suit with a 60-38 vote, with several Democrats supporting it , including Senate Majority Leader Chuck Schumer.


However, annulling a veto requires a significant effort, needing a two-thirds majority from both houses of Congress. This significant barrier ensures that Biden’s veto is likely to stand , much to the frustration of the cryptocurrency industry.

The immediate backlash from the crypto community was evident . The Blockchain Association showed discontent , stating that bipartisan majorities in both Houses acknowledged the issues created by SAB 121. Similarly, Cody Carbone, Chief Policy Officer at the Digital Chamber, denounced the decision as a setback for innovation .

Legislative attempt overturn triggered worries within the crypto community, especially in light of speculations that Biden’s campaign has been communicating 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 including cryptocurrencies into our financial systems. He stressed 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, noted that she was predictably disheartened by the veto. She highlighted the challenge of reversing publicly stated positions , suggesting that silence could have been a better strategy in some cases.

In conclusion, Biden’s veto of the SEC bulletin reversal is a clear indicator of the administration’s measured strategy towards cryptocurrency regulation. While the move aims to protect consumers and investors, it also raises critical concerns about the future of crypto accounting standards and the broader regulatory landscape. As the debate continues, it will be crucial to see how these policies develop and what impact they will have on the expanding crypto industry. For anyone interested in the crypto space, staying informed about these developments is important, and Coinatory is a reliable outlet for the latest updates.

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