Biden's Veto on Crypto Accounting Rule Repeal Draws Criticism; Senators Rally for Cryptocurrency
Summary:
U.S President Joe Biden vetoed a Congressional resolution to repeal crypto accounting rules, drawing criticism from pro-crypto U.S. Senator Cynthia Lummis. She claimed Biden missed a chance to rectify his stance on crypto assets. SAB 121 requires firms holding customer crypto assets to record them as a liability, a move considered discouraging for publicly reporting banks. After both the House and Senate favored nullifying these guidelines, many Senators have publicly shown support for cryptocurrency. Notably, pro-crypto Senator Ted Cruz recently announced his venture into Bitcoin mining.
U.S. President Joe Biden passed up a chance to adress his stance on the issue of cryptocurrency assets, when he vetoed the nullification of contentious cryptocurrency accounting rules, says U.S. Senator Cynthia Lummis, a known supporter of crypto. In a statement made on May 31, Lummis said, "The Administration had a chance provided by Congress to rectify its stance on crypto assets." She was referring to Biden's veto on a Congressional resolution that aimed to countermand the Staff Accounting Bulletin (SAB) No. 121 of the U.S. Securities and Exchange Commission (SEC).
Expressing her strong disapproval of the decision, Lummis continued, "I will not passively watch as the administration tries to bypass the law, and I will persist in supporting fiscal innovation and the critical protections for crypto assets that this administration is so determined to suppress."
The obligation under SAB 121 for firms that hold clients' crypto assets to register them as liabilities, along with an equivalent asset on the balance sheet, is a discouraging prerequisite for banks reporting publicly.
This occurred a mere hours after Lummis made a personal plea to Biden in a letter asking him not to veto the fresh Congressional nullification of the SEC's SAB 121. Lummis criticised the SEC for circumventing the law by issuing directions instead of conducting a notice and comment rulemaking, thus dodging a full commission vote on a contentious regulation.
Given that both the Senate and House of Representatives voting were in favor of nullifying the controversial guidelines, many Senators have expressed their support for cryptocurrency. Notably, another government official known for supporting crypto, Republican Senator Ted Cruz, informed his 6.3 million followers that he has started Bitcoin mining. Cruz announced, "Today, I purchased three Bitcoin miners operating in Iraan, TX. I'm thrilled to join the Bitcoin miners of Texas." This happened on May 31.
This trajectory of crypto supporters influencing the 2024 election is predicted to continue.
Published At
6/1/2024 8:59:28 AM
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