Presidential Veto Alert: Biden Blocks SAB 121 Overturn

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As an analyst with a background in financial regulation and experience following the crypto market, I believe Biden’s veto of the congressional resolution to repeal SAB 121 is a prudent decision aimed at maintaining investor protection. The SEC’s guidance measure, which required financial institutions to consolidate cryptocurrencies on their balance sheets, was met with criticism for its potential negative impact on the crypto industry and investors.

I, President Joe Biden, have taken the decision to veto congressional resolution H.J. Res.109. This resolution aimed to repeal SEC Staff Accounting Bulletin (SAB) No.121, a contentious SEC guidance measure that has been criticized for being unfavorable towards cryptocurrencies. The timing of my veto comes amidst speculation that the current administration was attempting to win over crypto voters in the upcoming US general elections through this action.

SAB 121 Repeal To Jeopardize Investors’ Interest, Biden Says

As a crypto investor, I’d put it this way: On March 31, 2022, the SEC issued SAB 121, which required financial institutions to include cryptocurrencies held for clients in their balance sheets. This meant that these assets could no longer be considered off-balance sheet items and therefore, the firms could no longer claim they were safeguarding these digital assets separately.

As a crypto investor, I’ve noticed that the SAB 121 guideline received significant backlash due to its apparent hostility towards cryptocurrencies. Many perceived it as an unconventional approach that enabled the SEC to circumvent typical procedures in rulemaking. In these procedures, input from affected parties such as ourselves is usually sought before any regulation is proposed.

I analyzed the recent development regarding SAB 121 repeal in the US. In May, the Congress passed a resolution with the House voting at 228-182 and the Senate at 60-38, aiming to overturn the SEC’s staff accounting bulletin. However, I must note that my current perspective is as an analyst, not involved in the decision-making process. More recently, President Biden announced his rejection of this resolution for various reasons.

Initially, Biden expressed concern that rescinding the given directive would incorrectly weaken the SEC’s capacity to establish effective regulatory frameworks and address upcoming challenges. Furthermore, he warned that the suggested repeal might leave American investors vulnerable to potential harm and risks.

Biden said: 

Our government won’t back policies that put consumers and investors at risk. It’s essential to establish safeguards ensuring consumer and investor protection while allowing the full potential of crypto-assets to be realized.

The President additionally addressed the absence of distinct federal guidelines for the cryptocurrency sector. He remarked:

Our team is excited to collaborate with Congress to establish a thorough and equitable regulatory structure for digital assets. This framework will be based on current legal foundations, fostering the responsible growth of digital assets and advancements in digital payments. Additionally, it will strengthen America’s position as a pioneer in the global financial sector.

Biden Government Back To ‘Default’ Crypto Policy? 

As a researcher studying the latest developments in the cryptocurrency market, I’ve noticed an uptick in positive news surrounding Ethereum‘s spot ETF and other related events. This has led some observers to speculate that the current administration may be reconsidering its position on digital assets. However, a recent action by the administration is now raising doubts about this possibility.

Approximately 46 million American crypto users are anticipated to play a significant role in the upcoming elections in October, aiming to safeguard their concerns as they face a challenging regulatory environment.

As a researcher studying the political landscape, I can’t definitively say whether the Biden administration plans to court voters who were previously supportive of former President Trump’s policies, especially those related to cryptocurrencies. However, it’s worth noting that Trump himself, who was once critical of Bitcoin, has recently expressed support for the development of cryptocurrencies in the United States.

Presidential Veto Alert: Biden Blocks SAB 121 Overturn

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2024-06-01 12:42