US President Joe Biden has vetoed a bill to overturn Securities and Exchange Commission (SEC) disclosures that set accounting standards for companies that store cryptocurrencies.
“If the prudent judgment of SEC staff is overturned in this way, there is a risk that the SEC’s broad authority over accounting practices will be undermined,” Biden said in a formal letter dated May 31. The bill sought to repeal the SEC’s cryptocurrency accounting guidance, which would require institutions holding cryptocurrency assets to record them as liabilities on their balance sheets.
“Our administration will not support actions that jeopardize the well-being of consumers and investors,” Biden added. “Leveraging the potential benefits and opportunities of crypto asset innovation requires appropriate guardrails to protect consumers and investors.”
Earlier this month, the House and Senate both voted to repeal the SEC Staff Accounting Bulletin, known as SAB 121.
The directive directs financial institutions that hold cryptocurrencies to allow customers to hold assets on their balance sheets, a move critics argue complicates the involvement of financial institutions and cryptocurrency companies.
The House passed the bill by a vote of 228 to 182, with most Republicans supporting it, but 21 Democrats also voted in favor. A week later, the Senate voted 60-38, with several Democrats, including Senate Majority Leader Chuck Schumer of New York, supporting the bill.
Overturning a presidential veto requires a two-thirds majority vote in both houses of Congress.
Is it a slap in the face or a praiseworthy one?
Biden’s controversial decision drew immediate criticism from the cryptocurrency industry.
Cryptocurrency advocacy group Blockchain Association declared in a post on May 31, “We are disappointed that the Administrator has decided to overrule the bipartisan majorities in both houses of Congress for recognizing the harm caused by SAB 121.”
Cody Carbone, chief policy officer at the Digital Chamber, also criticized the veto, calling it “a slap in the face to innovation and financial freedom.”
The veto also raised concerns within the cryptocurrency community. Especially since it appears to contradict speculation that Biden’s campaign has adopted a more cryptocurrency-friendly stance by working with cryptocurrency industry players.
“If it is true that the Biden campaign is engaging with cryptocurrency thought leaders, I commend them. I have publicly encouraged them and the President not to make the mistake of giving in on this issue and not to ignore its importance to the future of our country. Cryptocurrencies are here to stay and it is important for us to hear about both candidates’ perspectives and plans on how to integrate cryptocurrencies into the financial system,” Moe Vela, senior advisor to Unicoin and former senior advisor to Biden, said in a statement. said. Crypto News
“We are disappointed but not surprised by the SAB121 CRA veto,” said Sheila Warren, CEO of the Crypto Council. As I often say, silence is golden. “Because some positions that were once publicly stated are difficult to resign,” he added.