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House Financial Services Committee Chairman Patrick McHenry (R-NC) and Senator Cynthia Loomis (R-WY) urge President Joe Biden to reconsider his veto of the bipartisan Congressional Review Act (CRA) resolution to overturn Securities and Exchange Commission (SEC) staff accounting. I led a letter urging that this be done. Notice 121 (SAB 121). SAB 121 prohibits highly regulated financial companies from storing Bitcoin and other cryptocurrencies.
“In light of the overwhelming bipartisan vote, we urge you to sign HJ Res. Enact 109 into law or work with the SEC to repeal the employee directive,” the letter states. “It is within the SEC’s authority to repeal SAB 121, and there is ample precedent to revisit the Staff Accounting Bulletin.”
The CRA passed the Senate 60-38 and the House 228-182. McHenry said this protects essential storage services and consumers. Senator Kirsten Gillibrand (D-NY), Representative French Hill (R-AR), Ritchie Torres (D-NY) and others also urged regulators not to enforce SAB 121 after it was deemed a rule under the CRA. I did.
On November 15, McHenry, Lummis, Flood, Nickel, Gillibrand, Hill and Torres made these claims to federal regulators. On February 1, Lummis, Flood, and Nickel introduced the bipartisan CRA.
As Crypto Briefing reported, a Biden veto is all but certain after the US president signaled his intention, citing the need to protect investors and the financial system. If the president issues a veto, Congress would need a two-thirds majority to override it.
However, recent developments in the U.S. regulatory environment may increase the likelihood that Biden will decide not to veto the bill. According to Bloomberg ETF analyst Eric Balchunas, the SEC’s sudden shift toward approving a spot Ethereum ETF was triggered by “political issues.”
Moreover, presidential candidate Donald Trump has recently demonstrated a cryptocurrency-friendly approach in his campaign, and Biden may want to stay on the good side of this voter share.
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