Headline Roundup • June 2nd, 2024
Biden Vetoes Crypto Resolution Supported by House, Senate, and Banks
Banking And Finance,Cryptocurrency,Securities And Exchange Commission,Joe Biden,White House,Biden Administration,Bipartisanship
Summary from the AllSides News Team
President Joe Biden vetoed a congressional resolution that would have overturned the Securities and Exchange Commission’s (SEC) current approach to cryptocurrencies on Friday.
The Details: The resolution passed both chambers of Congress on May 16 with a 60-38 Senate vote. The resolution targeted the SEC’s Staff Accounting Bulletin 121 which effectively tells banks they should treat crypto assets as liabilities. Banks have expressed discontent with the SEC’s current approach, saying it would make it too expensive for them to handle cryptocurrencies.
Key Quote: Biden said in a statement, “By virtue of invoking the Congressional Review Act, this Republican-led resolution would inappropriately constrain the SEC’s ability to set forth appropriate guardrails and address future issues.” He added that his administration “will not support measures that jeopardize the well-being of consumers and investors.”
How The Media Covered It: TechCrunch (Center bias) wrote that regulators argue the SEC’s approach is “necessary to protect investors.” ZeroHedge (Lean Right bias) claimed “earlier this month (the White House) said it opposed legislation that passed the House establishing a regulatory framework for digital assets,” but “stopped short of a full veto threat.” Axios (Lean Left bias) cited a May 8 statement in which the White House said Biden would veto this resolution if it reached his desk.
Featured Coverage of this Story
Samuel Corum / Getty
President Biden vetoed legislation that struck down the Securities and Exchange Commission's special rules for custodians of crypto assets, as expected.
Why it matters: The SEC policy could be a major impediment to traditional financial companies offering services that involved holding onto customers' cryptocurrency.
Catch up fast: The legislation was passed by both chambers of the U.S. Congress with a Senate vote on May 16.
The White House had indicated it would veto the legislation if presented with it.
Hannah Beier/Bloomberg via Getty Images
President Joe Biden has vetoed H.J.Res. 109, a congressional resolution that would have overturned the Securities and Exchange Commission’s current approach to banks and crypto.
Specifically, the resolution targeted the SEC’s Staff Accounting Bulletin 121, which presents guidance around how banks can handle customers’ crypto assets — in effect, they must treat those assets as liabilities. Banking groups have criticized this approach as making it prohibitively expensive for them to handle crypto, while regulators argue it’s necessary to protect investors, particularly after the collapse of high-profile crypto companies like FTX.
...
After the recent shocking ETH ETF approval, many hoped that Biden was changing his tune of relentless antagonism toward the crypto industry - TheBlock even went so far as to report that the "Biden campaign ramps up crypto industry outreach in surprising tone shift" - and would not veto the bill overturning the SEC's SAB 121 which makes it more difficult for entities like banks to custody crypto.
Well, that didn't happen.
Late on Friday, Biden vetoed the bill that would strike down Securities and Exchange Commission guidance that the crypto industry, the banks and Congress...
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