Coinatory mentioned that Biden has rejected a move by Congress to reverse a SEC bulletin. This bulletin sets rules for companies that hold crypto assets.
In a document dated the end of May, Joe Biden emphasized, “This reversal of the deliberate decision of SEC staff could undermine the SEC’s wider powers regarding accounting practices.” The legislation sought to nullify the SEC’s accounting rules for crypto, which mandate that institutions managing crypto assets must record them as debts on their balance sheets. Biden's government emphasizes the importance of strict regulations, highlighting the importance of protecting market participants.
Earlier this period, both the lower chamber and upper chamber voted to repeal the SEC’s SAB 121, known as the guideline. This rule mandates financial entities holding crypto to guarantee that customers’ assets are recorded on their financial statements. Opponents argue that this hinders financial institutions' involvement with crypto companies. The House of Representatives ratified the bill with a 228 to 182 vote, with significant Republican backing, though some members of the Democratic party also voted in favor. Request a demo , the Senate passed it with a 60 to 38 vote, with a number of Democratic Senators, including the Majority Leader, backing the measure. However, reversing a veto requires a two-thirds majority from both houses of Congress, a challenging feat.
The response from the cryptocurrency industry was quick and critical. For instance, the digital currency alliance voiced their disapproval, saying, “We’re dissatisfied that the admin opted to overrule broad support in both chambers who recognized the harm created by SAB 121.” In the same vein, Cody Carbone, lead policy officer at the Digital Chamber of Commerce, described the action as “a significant blow to tech advancement and financial liberty.”
Conjectures have emerged regarding Biden's relationship with the crypto industry. There are indications that his team has been talking to crypto industry leaders to take a friendlier approach to crypto. Moe Vela, Unicoin's Senior Advisor and a former Biden advisor, commented on this, saying, “If it’s true that the Biden campaign is talking to crypto innovators, I commend them. I’ve openly supported them and the President not to make the mistake of conceding on this issue nor to dismiss its impact to the future of our nation. Cryptocurrency is here to stay, and it’s vital that we listen to both political contenders on their views and strategies for how to incorporate digital currency into our economy.”
The Biden's decision has clearly caused unease within the crypto community. Sheila Warren, head of the Crypto Council, commented, “Let down but not shocked by the denial of the CRA, as I often say, keeping quiet is wise, because some views once publicly stated wind up being tough to walk back.”
In closing, Biden's veto on the legislation to repeal the SEC's SAB 121 demonstrates a strong position on ensuring rigorous oversight over the digital currency market. While it underscores the government’s dedication to protecting consumers and investors, it also provokes further debate on how to encourage progress without undermining oversight.