Concluding a messy week in both cryptocurrency and politics, U.S. President Joe Biden notified Congress on Friday that he has vetoed a bipartisan resolution to repeal the Security and Exchange Commission.
“If the SEC staff’s prudent judgment is overturned in this way, there is a risk that the SEC’s broad authority over accounting practices will be undermined.” Reads a notice from the White House. “Our government will not support measures that jeopardize the well-being of consumers and investors.
“Therefore, I reject this resolution,” Biden concludes.
The fight over Staff Accounting Bulletin (SAB) 121, which is separate from the Financial Innovation and Technology 21st Century Act (FIT21), has been going on for more than a year. Biden announced his intention to veto the bill the day it passed the U.S. House of Representatives in a bipartisan vote of 228-182.
The Senate followed suit, with 12 Democrats joining most Republicans in promulgating a resolution to repeal the policy by a 60-38 vote.
In his notice of veto, Pres. Just as he did when he first expressed opposition to the bill, Biden criticized the bill, citing the Congressional Review Act as the basis for his objections from oversight lawmakers.
“This Republican-led resolution will inappropriately limit the SEC’s ability to establish appropriate safeguards and resolve future issues,” President Trump wrote today.
On May 8, he argued that “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.”
Biden has signaled he is willing to work with Congress on “a balanced regulatory framework for digital assets.” This is the ostensible goal of the FIT21 bill, which Biden also opposes. But he did not threaten to veto SAB 121, as he did.
The FIT21 Act creates a federal framework for digital asset regulation and was passed by the U.S. House of Representatives last week with the support of 71 Democrats and all but three Republicans. This shows that the issue is strong enough for lawmakers to cross party lines.
The announcement comes a day after former President Donald Trump, the presumptive Republican rival in November’s presidential election, was found guilty in a New York court on 34 criminal charges levied against him. Trump has recently turned his cryptocurrency vote to the courts as it has become an increasingly powerful campaign issue.
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