Joe Biden refuses to overturn SEC encryption policy.
President Joe Biden rejected the resolution U.S. Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) No. To overturn 121.
A resolution to repeal the SEC’s guidance was previously obtained. There is strong bipartisan support in Congress. The House voted 228 to 182 in favor of repeal, and the Senate followed with 60 to 38.
Despite these votes, Biden decided to keep the guidelines in place. It sparks discontent within the cryptocurrency community.
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The SAB 121 guidelines, scheduled to take effect on April 11, Mandating banks to include customers’ digital assets on their balance sheets It’s a requirement that has been criticized for stifling innovation.
In his May 31 letter explaining the veto, Biden emphasized the need to maintain the SEC’s authority. He wrote:
If the SEC staff’s prudent judgments are overturned in this way, there is a risk that the SEC’s broad authority over accounting practices will be undermined. Our government will not support measures that jeopardize the well-being of consumers and investors.
Biden added that his administration is committed to: Work with Congress to create a balanced regulatory framework for cryptocurrencies; Strengthens America’s leadership in the global financial system by strengthening the responsible development of digital assets and payments innovation.
The reaction from the cryptocurrency community was immediate and significant, with many people expressing their displeasure on social media platforms. Cody Carbone, chief policy officer at the Digital Chamber, explained the veto: “It’s a slap in the face to innovation and financial freedom.”
Ripple CEO Brad Garlinghouse also criticized this decision:
To say that this White House is incredibly disappointing at an incredibly important time is an understatement.
The debate continues as the cryptocurrency industry grapples with the implications of this decision. Advocates for repeal argue the guidelines are overly restrictive, while supporters believe they provide necessary safety measures.
In other news, Senators Elizabeth Warren and Bill Cassidy recently requested information from drug enforcement agencies about a move to ban the use of cryptocurrencies in fentanyl trafficking.
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis analyzing the differences between Western capitalism and collective capitalism after World War II.
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