President Biden Vetoes Resolution to Overturn SEC Crypto Guidance
President Joe Biden vetoed a congressional resolution aimed at overturning US Securities and Exchange Commission (SEC) guidance that the cryptocurrency industry claims hinders its collaboration with banks, as reported by Bloomberg.
This guidance, known as Staff Accounting Bulletin No. 121, has faced opposition from banks since its release in 2022. Banks argue that the guidance makes it too costly to expand services for holding digital assets on behalf of customers.
The resolution, which passed the Senate with support from 11 Democrats, sought to invalidate the SEC bulletin. It also passed the House with a 228-182 vote, with lawmakers asserting that the guidance restricts Americans’ ability to store digital assets in traditional banks.
“My administration will not support measures that jeopardize the well-being of consumers and investors,” Biden said in his veto message released Friday evening. “Appropriate guardrails that protect consumers and investors are necessary to harness the potential benefits and opportunities of crypto-asset innovation.”
Biden also expressed his willingness to collaborate with Congress to develop a comprehensive and balanced regulatory framework for digital assets.
Earlier this month, the White House stated its opposition to House-passed legislation that would establish a regulatory framework for digital assets, arguing that it lacked sufficient consumer and investor protections. However, the White House did not issue a full veto threat, indicating the president’s openness to negotiating legislation on this issue.
