US President Joe Biden has vetoed Congressional Resolution HJ Res.109, which seeks to repeal US Securities and Exchange Commission (SAB) Staff Accounting Circular 121, a controversial guidance measure widely viewed as anti-crypto. Interestingly, Biden's actions come amid rumors that the current government was making a stand to curry favor with crypto voters in the upcoming US general election.
Biden says repealing SAB 121 puts investors' interests at risk
On March 31, 2022, the SEC introduced SAB 121, which directed all financial institutions that hold cryptocurrencies for customers to consolidate these assets on their balance sheet and thus prevent these companies from protecting these digital assets.
SAB 121 has received a lot of criticism due to its anti-crypto nature. It was also viewed as a controversial directive that allowed the SEC to go beyond the normal steps in its rulemaking policy that often includes comments from relevant stakeholders on any proposed regulation.
Earlier in May, the US Congress approved the repeal of SAB 121 with the House voting 228-182 and the Senate voting 60-38 in favor of repealing the SEC Staff Accounting Bulletin. However, Biden did Reject now This decision is given for several reasons.
First, Biden stated that rescinding the aforementioned guidance would “inappropriately” undermine the SEC’s ability to put the right regulations in place and solve future problems. In addition, the US President said that the proposed decision may expose American investors to certain harms and risks.
Biden said:
My administration will not support measures that jeopardize the well-being of consumers and investors. Proper guardrails that protect consumers and investors are essential to harness the potential benefits and opportunities of crypto asset innovation.
The president also commented on the lack of clear federal rules and regulations in the cryptocurrency space. He said:
My Administration is eager to work with Congress to ensure a comprehensive and balanced regulatory framework for digital assets, building on existing authorities, which will promote responsible development of digital assets and innovation in payments and help strengthen U.S. leadership in the global financial system.
Will the Biden government return to the “default” encryption policy?
Amid the surprise approval of the spot ETF among other events, there has been speculation that the current administration may soften its stance on the use of digital assets. However, Biden's latest action is likely to cast doubt on such beliefs.
It is widely expected that Cryptocurrency users in the US (worth 46 million) They will be looking to make an impact at the polls in October in order to protect their interests amid the current hostile regulatory regime.
Whether the Biden government intends to convince these voters remains largely to be seen, however, as former President Donald Trump, a direct opponent of Biden and a former Bitcoin critic, has begun calling for the development of cryptocurrencies in the United States.
Featured image of the White House, chart from Tradingview