President Joe Biden has vetoed a bipartisan resolution that aimed to overturn the Security and Exchange Commission’s crypto custody guidance.
What Happened: The resolution, which was passed by both the House and the Senate, sought to nullify the SEC’s Staff Accounting Bulletin (SAB) 121. In a letter sent to the House of Representatives on Friday, President Biden stated that removing the guidance would impair the SEC’s ability to implement safeguards and protect investors, reported The Daily Hodl.
“SAB 121 reflects considered technical SEC staff views regarding the accounting obligations of certain firms that safeguard crypto-assets. By virtue of invoking the Congressional Review Act, this Republican-led resolution would inappropriately constrain the SEC's ability to set forth appropriate guardrails and address future issues,” he said in the letter.
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Adding, “This reversal of the considered judgment of SEC staff in this way risks undercutting the SEC's broader authorities regarding accounting practices. My Administration will not support measures that jeopardize the well-being of consumers and investors.”
Why It Matters: The Republican-led legislation passed in the House with a 228 to 182 vote, gaining support from 21 Democrats. It also passed in the Senate with a 60 to 38 vote, with eleven Democrats backing the bill.
President Biden’s veto occurs amid heightened political and regulatory focus on Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH) and other cryptocurrencies. Moreover, the crypto community has been closely watching the administration’s stance on digital assets, with a significant portion of voters considering a candidate’s crypto stance in the upcoming 2024 election.
Meanwhile, former President Donald Trump, who is expected to be Biden’s Republican rival in the 2024 election, has been vocal about his support for crypto. Last week, he started accepting crypto donations, pledging to support the industry and the rights of investors to self-custody their assets. Trump’s stance on digital assets has been applauded by figures like Robert Kennedy Jr.
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