Deadline for Biden to Veto SAB 121 Repeal Delayed

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As a seasoned crypto investor with a keen interest in regulatory developments, I’m closely monitoring the ongoing situation regarding H.J. Res 109 and the potential repeal of SAB 121. The extended deadline for President Biden to make a decision on this matter is critical, as it could significantly impact the future of cryptocurrency custodial services and financial privacy.

President Joe Biden has been given more time to make a decision on whether to repeal Staff Accounting Bulletin (SAB) 121, as the delivery of H.J. Res 109 to him has been postponed until June 3rd.

The Senate passed a resolution aimed at overturning a Securities and Exchange Commission (SEC) rule concerning cryptocurrency custody services. This action was facilitated by the collaboration of Democrats and Republicans.

Deadline for Biden to Veto SAB 121

Last week, the Senate passed H.J. Res 109 with a vote of 60 to 38. This resolution aims to revoke SAB 121, a Securities and Exchange Commission (SEC) rule, which requires banks to list digital currencies owned by their customers as their own assets on balance sheets. This controversial regulation has faced strong objection from both the banking sector and the cryptocurrency industry.

The status on the #SAB 121 process: Yesterday evening, we received confirmation that Congress had not forwarded H.J Res 109, the resolution aiming to revoke SAB 121, to President Biden until then.

The President, @POTUS, now has until June 3rd inclusive (excluding Sundays) to decide on vetoing the Resolution. This modification affects the initial 10-day period.

— Cody Carbone (@CodyCarboneDC) May 23, 2024

The financial privacy protection bill, introduced by Representative Tom Emmer of Minnesota, the House Majority Whip, is designed to restrict government intrusion into financial transactions.

As a crypto investor, I’m keeping a close eye on the political landscape that could potentially impact my investments. Recently, the Senate vote on a particular resolution did not get transmitted to President Biden right away, which changed the standard ten-day veto period to June 3rd. This delay is crucial because it falls during the congressional recess, meaning there’s a possibility of a pocket veto being avoided. Consequently, the President will have sufficient time for making informed decisions while Congress is in its pro-forma sessions.

Presidential Decision Awaits

President Biden currently has three possible actions with respect to the Joint Resolution: He can endorse it and allow it to transform into law by signing it, he can refuse it by vetoing it, or he can take no action, resulting in its enactment without his signature. Initially, Biden expressed his intent to veto the resolution in a Statement of Administration Policy on May 8th, citing concerns over financial regulation and supervision.

As an analyst, I’ve observed that past instances of veto threats don’t automatically result in the veto being used. The outcomes can vary.

Critics have raised concerns that the SEC’s rule may hinder innovation and infringe upon personal financial matters by imposing excessive regulations.

Industry Reaction and Regulatory Context

The Senate’s decision to revoke SAB 121 has gained support from the cryptocurrency sector, with Ripple‘s Chief Legal Officer, Stuart Alderoty, hailing it as a triumph against excessive regulation. Likewise, SEC Commissioner Hester Peirce, known as “Crypto Mom,” voiced her agreement during a discussion on digital asset regulatory issues.

Simultaneously, Michael Saylor, MicroStrategy’s CEO, endorsed the Senate’s action. He emphasized the significance of safeguarding the rights of digital currency owners and preventing overly restrictive regulations that may harm the United States’ position in the worldwide financial market.

In the current climate of uncertainty, Senator Cynthia Lummis reiterated the burgeoning approval for cryptocurrencies within Congress, referencing recent successes such as the repeal of SAB 121 and the enactment of FIT 21.

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2024-05-24 00:08