U.S. President Joe Biden has vetoed a resolution that sought to overturn the U.S. Securities and Exchange Commission’s Staff Accounting Bulletin (SAB) No. 121.
This decision was quickly met with criticism from the whole cryptocurrency industry.
It’s for our safety
In his statement, Biden emphasized his commitment to protecting consumers and investors, arguing that the resolution would undermine the SEC’s authority and its regulatory framework regarding accounting practices.
Biden’s veto was also a response to Congress, where both the House of Representatives and the Senate had voted to repeal the SEC’s guidelines, which were to take effect on April 11, required institutions that custody crypto assets to record these holdings as liabilities on their balance sheets.
The crypto community and several lawmakers opposed this rule, arguing it would harm innovation and hinder the industry’s growth during the current, hard period.
Veto against the democratic majority
The Blockchain Association expressed disappointment in a May 31 post, criticizing the administration for overturning bipartisan majorities in both houses of Congress that recognized the real impact of SAB 121, but Biden defended the veto by stressing the importance of maintaining the SEC’s regulatory authority to safeguard consumer and investor interests.
Lawmakers in the House had voted 228 to 182 in favor of repealing the SEC’s guidance, with the Senate following suit with a 60 to 38 vote.
Despite this legislative pushback, Biden’s veto has reinforced the administration’s stance on maintaining stringent regulatory oversight of the crypto industry.
Taxpayers aren’t impressed
The crypto community took to social media to voice their discontent after the veto.
Digital Chamber chief policy officer Cody Carbone described the veto as a setback for innovation and financial freedom, and his opinion was echoed by Ripple CEO Brad Garlinghouse, highlighting the decision’s disappointing timing during a pivotal moment for the whole crypto industry in the United states.
This veto highlight the growing role of cryptocurrency in political and regulatory discussions, with governments worldwide viewing the sector as a high priority.
As crypto continues to integrate more deeply into financial systems, majority of experts think its regulation will likely remain a contentious and central issue in global politics.
