A resolution to overturn SEC crypto rules is on Biden’s desk. What to do now?
Although many House members praised the passage of two cryptocurrency-friendly bills this week, President Joe Biden may still veto one bill praised by industry advocates.
According to congressional records, on May 23, the House of Representatives submitted a joint resolution to the President of the United States calling on the Securities and Exchange Commission (SEC) to repeal regulations affecting financial institutions that do business with cryptocurrency companies. The bill, called HJRes.109, is part of the SEC’s Staff Accounting Bulletin (SAB) No. 1, which would require banks to maintain customers’ cryptocurrencies on their balance sheets and maintain capital. We will take down 121.
On May 8, before the House and Senate passed the resolution, President Biden announced that he would veto it. He argued that the bill would “improperly limit the SEC’s ability to ensure appropriate guardrails and address future issues related to crypto assets” and limit regulatory guidance for digital assets.
Related: Biden may reconsider vetoing SAB 121 due to political support for cryptocurrencies.
But in about two weeks, the political landscape has shifted slightly. It was unclear whether President Biden would veto the resolution or sign it into law given recent events in Congress.
On May 8, 21 Democrats in the House sided with Republicans to pass HJRes.109. A similar bipartisan result occurred in the Senate on May 16, where the resolution passed 60 to 38.
Before the House voted on the Financial Innovation and Technology for the 21st Century (FIT21) Act, the White House issued a statement saying President Biden opposed the bill but did not explicitly threaten to veto it. More than 70 Democrats joined a majority of Republicans to pass the bill, which will soon be sent to the Senate.
“HJ 109 and its bipartisan support are a clear rebuke to the SEC’s vision for cryptocurrency oversight.” Moe Vela, then-Vice President Biden’s executive director, told Cointelegraph. “I strongly encourage the Biden administration to work with the cryptocurrency industry to develop regulations and policies that are consumer friendly and supportive of the industry.”
Bella added:
“We cannot predict whether the President will veto HJ 109, but we strongly recommend that he not do so.”
Cryptocurrency supporters will find out President Biden’s course of action within 10 days, excluding Sunday, which is the maximum allowed time to sign or veto the bill. The bill arrived on his desk the day the SEC approved spot Ether (ETH) exchange-traded funds for the first time to list and trade on U.S. exchanges.
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