Rep McHenry Calls for Overturn of Biden Veto on SEC SAB 121

by

As a crypto investor with some experience in following the regulatory landscape, I firmly support Representative Patrick McHenry’s call to overturn President Biden’s veto of H.J. Res. 109. The bipartisan nature of this issue is evident from the wide-ranging support it has received in both houses of Congress and the recent passage of the FIT21 Act.

Chairman Patrick McHenry of the House Financial Services Committee has forcefully argued for reversing President Biden’s rejection of a bill intended to invalidate the Securities and Exchange Commission’s Staff Accounting Bulletin No. 121 (SAB 121).

Rep McHenry Calls for Overturn of Biden Veto

In a recent House session, Representative Patrick McHenry initiated a discussion among Republican colleagues as they debated overriding the President’s veto of H. J. Res. 109. The objective of this resolution is to disapprove the Securities and Exchange Commission (SEC) rule concerning Staff Accounting Bulletin No. 121, which pertains to how banks manage and store digital assets.

The debate highlighted the consensus among Republicans and Democrats that the previous disapproval enjoyed broad approval in the House and Senate. McHenry emphasized the importance of passing this resolution to update America’s digital asset policy and urged his colleagues to support the motion to overturn the veto.

Here’s a suggested way of paraphrasing that statement in natural and easy-to-read language:
I, as an impartial analyst, would put it this way: “I observe that this Administration prioritizes political maneuvering and aligns itself with influential bureaucrats at the expense of the American public.”
Read more

— Financial Services GOP (@FinancialCmte) July 10, 2024

In his speech, McHenry criticized the current administration for backing policies he believed were detrimental to the public’s welfare. He specifically pointed to the initial approval of the Congressional Review Act (CRA) resolution and the subsequent enactment of the Financial Innovation and Technology (FIT) for the 21st Century Act, which endorsed the elimination of SAB 121 according to his perspective.

Bipartisan Support and Legislative Context

As a researcher studying the legislative process, I’ve noticed that H.J. Res. 109’s journey through Congress was marked by strong bipartisan support. In the initial stages, both houses passed the resolution with a substantial majority, which is consistent with the recent approval of the FIT21 Act.

Additionally, the Act, which included regulations for the digital asset market, received backing from a significant number of lawmakers from both parties, with 71 of them being from the President’s party.

This bipartisan standpoint on SAB 121 indicates a united effort among legislators to challenge the SEC’s approach towards regulating digital assets. Critics like McHenry argue that this rule places excessive burdens on banks, limits consumer options for asset safekeeping, and disrupts established industry practices without providing compelling reasons.

Mike Flood Criticizes SEC Overreach

During the debate, Representative Mike Flood voiced his opposition to the SEC’s implementation of SAB 121. He argued that the SEC, under the leadership of Chair Gensler, was overstepping its boundaries by taking on responsibilities that fall under the jurisdiction of other agencies such as the Federal Reserve and the Treasury Department.

Flood said,

The Securities and Exchange Commission (SEC) has been found to overstep its bounds. Their actions, clearly contrary to investor welfare, are akin to reaching into a jar for cookies that aren’t yours. SAB 121 is not a matter of politics; it’s merely an unsuitable rule.

Flood argued that SAB 121 weakens the conventional bank custody frameworks through the adoption of measures that are inapplicable to the banking sector’s operations.

Fed Chair Powell Voices Strong Support for Stablecoin Regulation

Read More

2024-07-10 23:10