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President Joe Biden has vetoed H.J.Res . 109 , a congressional solving that would have overturned the Securities and Exchange Commission ’s current approach to bank and crypto .
Specifically , the resolution point the SEC ’s Staff Accounting Bulletin 121 , which presents direction around how banks can cover customers ’ crypto assets — in effect , they must address those assets as liabilities . Banking groups have criticized this approach as making it prohibitively expensive for them to handle crypto , while regulators argue it ’s necessary to protect investor , in particular after the prostration of high - profile crypto companies like FTX .
“ SAB 121 reflects consider technological SEC staff thought regarding the accounting system obligations of certain firms that safeguard crypto - assets , ” Biden enounce ina affirmation . “ By virtue of invoke the Congressional Review Act , this Republican - led resolution would inappropriately constrain the SEC ’s ability to go under forth appropriate safety rail and address succeeding issues . ”
Biden went on to say his presidential term “ will not support measures that threaten the well - being of consumers and investors . ”
H.J.Res . 109 was passed with mostly Republican keep — but 21 Democrats supported the resolving in the House , and Majority Leader Chuck Schumer was among the Democrats who supported it in the Senate .
Organizations opposing SAB 121 include the American Bankers Association and other fiscal industry lobbying radical , as well as the crypto industriousness advocacy groupStand With Crypto .
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“ SAB 121 effectively precludes regulated banking establishment from offering digital plus custody at scurf since it do by the assets as if they are owned rather than just custodied by a banking brass , ” the ABA and other industry groups said inan open letter to President Biden .
The White House ’s announcement allow for the door loose to further negotiations around crypto regulation .
“ My Administration is eager to work with the Congress to ensure a comprehensive and balanced regulative framework for digital assets , building on existing authorities , which will promote the responsible development of digital assets and defrayal instauration and assist reenforce United States leadership in the global financial system , ” Biden said .
