Lawmakers have put pressure on President Joe Biden not to veto legislative action to overturn a controversial Securities and Exchange Commission bulletin that sets accounting standards for companies that manage cryptocurrencies.
In a letter to President Biden on Thursday, Sen. Cynthia Loomis, R-Wyo., and House Financial Services Committee Chairman Patrick McHenry, R-N.C., among other lawmakers, cited bipartisan votes in the House and Senate as reasons. Don’t exercise your veto.
Earlier this month, the full House and Senate voted in favor of a bill to repeal the SEC Staff Accounting Bulletin, also known as SAB 121. Last year, controversy erupted in the cryptocurrency industry over concerns that it could hinder banks from protecting digital assets. In order to record customer held cryptocurrency as a liability on the balance sheet, a company that stores the cryptocurrency is required.
“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 guidance,” the lawmakers said in a statement.. “It is within the SEC’s authority to repeal SAB 121 and there is ample precedent to reexamine the Staff Accounting Bulletin.”
Representatives French Hill, R-Ark., Andy Barr, R-Ky., Tom Emmer, R-Minn., Mike Flood, R-Neb., Ritchie Torres, D.N.Y., Wiley Nickel, D.N.C., and Dan Meuser of Pennsylvania also signed the letter.
that much house It previously passed the bill 228 to 182, with mostly Republicans but 21 Democrats signing on. A week later, senate The vote was 60 to 38, with several Democrats, including the majority leader in the Senate. Senate Majority Leader Chuck Schumer is voting in favor of this bill.
veto threat
In the ‘Administrative Policy Statement’ released by the White House, President Biden said the following. veto measurement. Specifically, the White House said: “Limiting the SEC’s ability to maintain a comprehensive and effective financial regulatory framework for crypto assets would result in significant financial instability and market uncertainty.”
A two-thirds majority is required to overturn a veto. The vote counts for the House and Senate are as follows: HJ Res. 109 is below that threshold.
Biden vetoed the bill before it passed the House and Senate in bipartisan votes. For example, the president reportedly vetoed a bill to overturn the joint employer rule that passed the House and Senate by bipartisan margins earlier this month. bloomberg legal
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