US President Joe Biden has vetoed a bill aimed at repealing the Securities and Exchange Commission (SEC) circular that sets accounting standards for companies holding cryptocurrencies.
In official letter “This reversal of the thoughtful judgment of SEC staff in this way threatens to undermine the SEC's broader authorities over accounting practices,” Biden said on May 31. The bill seeks to repeal the SEC's cryptocurrency accounting guidelines, which require institutions holding crypto assets to record them as liabilities on their balance sheets.
“My administration will not support measures that jeopardize the well-being of consumers and investors,” Biden added. “Appropriate guardrails that protect consumers and investors are essential to harnessing the potential benefits and opportunities of crypto asset innovation.”
Earlier this month, both the House and Senate voted to repeal the SEC's Staff Accounting Bulletin, known as SAB 121.
The directive instructs financial institutions that hold cryptocurrencies so that customers can hold the assets on their balance sheets, a measure that critics say complicates financial institutions' engagement with cryptocurrency companies.
The House approved the measure by a vote of 228-182, with Republicans mostly supporting it, though 21 Democrats also voted in favor. A week later, the Senate voted 60-38, with several Democrats, including Senate Majority Leader Chuck Schumer of New York, supporting the measure.
Overturning a presidential veto requires a two-thirds majority of both chambers of Congress.
A slap in the face or worthy of praise?
Biden's controversial decision was immediately met with criticism from the cryptocurrency industry.
“We are disappointed that the administration chose to overrule bipartisan majorities in both chambers of Congress who recognized the damage caused by SAB 121,” the blockchain advocacy group the Blockchain Association announced in a May 31 statement. mail.
Cody Carbone, chief policy officer for the digital chamber as well Criticize The veto, describing it as “a slap in the face to innovation and financial freedom.”
The veto also raised concerns within the cryptocurrency community, especially as it appeared to contradict speculation that the Biden campaign was interacting with players in the cryptocurrency industry to adopt a more pro-crypto stance.
“If it is in fact true that the Biden campaign is reaching out to cryptocurrency thought leaders, I applaud them. I have been publicly encouraging them and the president not to make the mistake of being condescending on this issue or ignoring its importance to our nation’s future. I have been encouraging them and the president not to make the mistake of being condescending on this issue or ignoring its importance to our nation’s future,” said Mo Vela, Unicoin senior advisor and advisor. The first former Biden, in a statement: “Cryptocurrencies are here to stay, and it is essential to hear from both candidates about their views and plans on how to integrate cryptocurrencies into our financial systems crypto.news.”
“I'm disappointed but not surprised by the CRA's veto of SAB121 — as I often say, silence is golden, because some publicly stated positions end up being difficult to undo,” said Sheila Warren, CEO of the Crypto Council, He added.