President Biden has followed through on a promise to veto SEC-related crypto legislation recently passed by the House and Senate.
The bill would have reversed SEC guidance, which says certain companies must label crypto assets as liabilities on their balance sheets, even if they simply hold the assets on behalf of customers.
In a letter to the House of Representatives, President Biden says removing the guidance would hinder the SEC’s ability to implement safeguards and protect investors.
“SAB 121 reflects thoughtful technical views of SEC staff regarding the accounting obligations of certain companies that protect crypto assets. By invoking the Congressional Review Act, this Republican-led resolution would inappropriately limit the SEC’s ability to set appropriate guardrails and address future issues.
This reversal of the SEC staff’s informed judgment thus threatens to undermine the SEC’s broader authorities on accounting practices. My government will not support measures that endanger the well-being of consumers and investors.
Appropriate guardrails that protect consumers and investors are necessary to realize the potential benefits and opportunities of crypto-asset innovation. My Administration is committed to working with Congress to ensure a comprehensive and balanced regulatory framework for digital assets, building on existing authorities, that will promote the responsible development of digital assets and payments innovation and ensure United States leadership in the global financial system will help strengthen. ”
The Republican-led legislation passed the House of Representatives on a 228-182 vote, with 21 Democrats on board. It cleared the Senate 60-38, with 11 Democrats supporting the legislation.
President Biden’s veto puts Bitcoin and crypto in both the political and regulatory spotlight.
Former President Trump began accepting crypto donations last week, pledging to support the industry and investors’ right to self-custody their assets.
Meanwhile, the SEC abruptly changed course on Ethereum ETFs, paving the way for their impending launch.
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Generated image: Midjourney