The Biden administration has issued a statement indicating its intention to veto a joint resolution concerning crypto policy at the Securities and Exchange Commission (SEC) if presented to President Biden for approval. The White House emphasized its strong opposition to the resolution, citing concerns that it could disrupt the SEC’s efforts to protect investors in the crypto-asset markets and ensure the stability of the broader financial system.
The joint resolution in question, H.J.Res. 109, seeks to overturn the SEC’s Staff Accounting Bulletin (SAB) No. 121, which mandates banks to maintain customers’ digital assets on their balance sheets, with appropriate capital reserves. The Biden administration highlighted the risks associated with digital assets and emphasized the importance of regulatory measures in mitigating potential losses for consumers.
Leaders from both the Democratic and Republican parties within the House Financial Services Committee voiced contrasting views on the resolution. Representative Patrick Henry, a Republican, advocated for its support, arguing that SAB 121 gave the SEC undue authority over financial institutions handling Americans’ digital assets. In contrast, Representative Maxine Waters, a Democrat, opposed the resolution, asserting that the SEC rule provided essential transparency in the digital asset space, thereby reducing the risk of fraud and mishandling.
During the House proceedings, H.J.Res. 109 initially appeared to pass by a voice vote. However, Representative McHenry called for a count of the yeas and nays, leading to a postponement of further proceedings on the resolution. It is worth noting that, under the U.S. Constitution, the House retains the power to override President Biden’s veto with a two-thirds majority vote.
The debate surrounding H.J.Res. 109 underscores the ongoing discussion regarding regulatory oversight of crypto-assets in the United States. While proponents argue for greater regulatory flexibility to foster innovation and consumer protection, opponents emphasize the importance of regulatory safeguards to mitigate risks and ensure market integrity. The outcome of this legislative debate will likely have significant implications for the future regulatory landscape of the crypto industry in the United States.
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