United States President Joe Biden vetoed a House resolution that sought to repeal the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121 (SAB 121) that allowed banks to custody bitcoin. .
In a statement published this Fridaythe Biden administration indicated that it would not accept such a measure as it undermined the authority of the SEC.
SAB 121 is an SEC accounting guideline that requires financial institutions that hold cryptocurrencies for their clients keep these assets on their own balance sheets, that is, they guard them. Critics of this guide point out that it complicates collaboration between financial institutions and cryptocurrency companies.
Biden declared that I would not support any measure that puts consumer safety at risk and investors. “This resolution, led by Republicans, would inappropriately limit the SEC’s ability to establish appropriate safeguards and address future challenges,” Biden commented. “Reversing the SEC staff’s judgment could undermine the SEC’s broad authorities on accounting issues.”
A change in Bitcoin policy in the United States
The veto came after banking groups and members of Congress They will send letters to Biden asking him to sign the resolution to repeal SAB 121. Lawmakers suggested the administration should work with the SEC to rescind the guidance if Biden maintained his intention to veto the resolution.
What this law would allow is to establish that banks custody bitcoin under regulatory measures, which, from the perspective of the White House, would reduce the authority of the SEC.
Although the resolution easily passed both houses of Congress, Biden reiterated the need to protect consumers and investors in the digital asset market.
The Biden administration appears to be committed to creating a regulatory framework for the Bitcoin and cryptocurrency ecosystem. As reported by CriptoNoticias, Congress is currently working on the 21st Century Financial Innovation and Technology Law or FIT21, which would provide a legal framework for cryptocurrencies.
Given the controversies, the Biden administration indicated that they would not veto the enactment of this law and that they are “enthusiastic” to work together with Congress to carry out this regulation.
The theme of Bitcoin and cryptocurrencies are becoming crucial not only for the present but also for the future within the United States. Even among the presidential candidates and diversity of politicians, a Bitcoin-related race seems to have begun.
