Sun, June 16, 2024

Biden Vetoes House Resolution on SEC’s Crypto Bulletin

Crypto investors assure Biden that they aren’t criminals

Quick Look:

  • President Biden’s Veto: President Biden vetoed a resolution aiming to overturn SEC’s crypto accounting guidance, SAB 121.
  • Defence of Veto: Biden emphasized the need for safeguards to protect consumers and investors.
  • Senator Wyden’s Criticism: Senator Wyden criticized SAB 121 for setting a unique standard for cryptocurrencies.
  • Additional Veto: Biden also vetoed a resolution limiting SEC’s crypto oversight, stressing the need for protective measures.

President Joe Biden vetoed a resolution from the House of Representatives that sought to overturn the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121 (SAB 121). This directive mandates financial institutions that hold cryptocurrencies for customers to include these assets on their balance sheets. Critics of SAB 121 argue that it poses challenges for financial institutions wishing to collaborate with cryptocurrency companies.

Biden Defends Veto, Emphasizes Consumer Protection

President Biden defended the veto by stressing the necessity of implementing appropriate safeguards to protect consumers and investors. His decision followed appeals from various banking groups and members of Congress urging the resolution’s approval. Despite these efforts, the resolution had successfully passed both the House and Senate with strong majorities.

Senator Wyden Criticizes SEC’s Crypto Standards

The SEC’s guidance has faced scrutiny, particularly from figures like Senator Ron Wyden, who, at CoinDesk’s Consensus 2024 conference, contended that SAB 121 imposes a distinct standard for cryptocurrencies compared to other financial assets. The debate highlights the ongoing tension between innovation in the cryptocurrency sector and regulatory measures designed to ensure financial stability and consumer protection.

Biden Rejects Bill Limiting SEC’s Crypto Control

On the same day, President Joe Biden vetoed another resolution aimed at curtailing the SEC’s regulatory authority over the cryptocurrency industry. He reiterated the importance of protective measures for consumers and investors to realise the potential benefits of crypto-asset innovation fully. Biden’s administration has committed to collaborating with Congress to establish a comprehensive and balanced regulatory framework for digital assets.

FIT21 Act Passes House, Faces SEC Opposition

The vetoed measure sought to eliminate the SEC’s special regulations for custodians of crypto assets. This legislative action followed the House’s passage of the Financial Innovation and Technology for the 21st Century (FIT21) Act. SEC Chair Gary Gensler had opposed the legislation, arguing that it would create gaps in regulation and weaken the oversight of investment contracts.

Administration Cites Consumer Risks in Veto Decision

The Biden administration expressed concerns that the bill lacked adequate consumer and investor protections. Nevertheless, the FIT21 Act saw bipartisan support in the House, passing with a vote of 279 to 136.

These vetoes underscore the Biden administration’s stance on maintaining stringent oversight and regulatory measures in the rapidly evolving cryptocurrency landscape. While there is recognition of the potential for innovation and economic growth within the sector, there is an equally strong emphasis on ensuring that such advancements do not compromise the safety and stability of the financial system.

YOU MAY ALSO LIKE

Stocks

Quick Look: Bilibili Inc. (NASDAQ: BILI) saw an 8.48% rise to $15.61,

Tractable raises $60M to grow in accident - robot recovery

Quick Look: Ray Kurzweil predicts significant lifespan extension and human-AI integration by

Gold

Quick Look: Gold (XAU) reached a record high in May 2024, with

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

Zenfinex Reports Revenue Surge but Faces Operating Losses

London-based broker Zenfinex, now operating as Taurex, has exposed its fiscal year 2023 financial results, which paint a complex picture of its economic situation. Zenfinex’s Fiscal Overview Zenfinex Limited’s revenue hit £848,306, a

BROKER NEWS

Broker News

Zenfinex Reports Revenue Surge but Faces Operating Losses

London-based broker Zenfinex, now operating as Taurex, has exposed its fiscal year 2023 financial results, which paint a complex picture of its economic situation. Zenfinex’s Fiscal Overview Zenfinex Limited’s revenue hit £848,306, a significant