US President Joe Biden vetoed a congressional resolution aimed at rescinding guidance from the US Securities and Exchange Commission (SEC), which was criticized for preventing the cryptocurrency industry from cooperating with banks.
Personnel Accounting Bulletin No. The guidance, referred to as 121, has faced opposition from both the crypto industry and banking institutions since its publication in 2022. Banks argued that the bulletin imposed prohibitive costs and prevented them from scaling services to hold digital assets for their customers.
The congressional resolution, which garnered bipartisan support in the Senate with 11 Democrats voting in favor, sought to invalidate the SEC release. It passed the House of Representatives by a vote of 228-182. Proponents of the decision argued that the guidance restricts options for Americans who want to store digital assets in traditional banks.
In his veto message released Friday evening, President Biden emphasized his administration's commitment to consumer and investor protection. “My administration will not support measures that jeopardize the well-being of consumers and investors,” Biden said, adding: “Appropriate safeguards that protect consumers and investors are necessary to realize the potential benefits and opportunities of crypto asset innovation.”
President Biden has also expressed willingness to cooperate with Congress on creating a comprehensive regulatory framework for digital assets. “I am eager to work with Congress to ensure a comprehensive and balanced regulatory framework for digital assets,” he added.
Earlier this month, the White House signaled its opposition to a bill passed by the House of Representatives that would create a regulatory framework for digital assets, citing inadequate consumer and investor protections. However, by refraining from threatening a full veto, the administration had indicated that the President was open to negotiating legislation on this issue.
*This is not investment advice.