Biden Mulls Veto on Pro-Crypto Bill Despite Bipartisan Support
Summary:
The House of Representatives recently passed two pro-crypto bills, but President Biden might veto one of them. The bill, known as H.J.Res.109, calls for the SEC to repeal a regulation complicating financial transactions between banks and crypto companies. Despite bipartisan support in the House and Senate, President Biden has signaled his intention to veto, believing it could limit the regulatory oversight of digital assets. The President's final decision, either to veto or sign the bill into law, is expected within ten days.
The recent approval of two pro-crypto bills by the House of Representatives has been met with applause from legislators. However, an impending veto from President Joe Biden on one of these pieces of legislation continues to be a likely scenario. On May 23, the President received a joint resolution from the House, urging the Securities and Exchange Commission (SEC) to revoke a regulation that impacts financial institutions transacting with crypto entities. H.J.Res.109, the bill in contention, aims to nullify the SEC's Staff Accounting Bulletin (SAB) No. 121 that mandates banks to maintain a capital reserve against customers' crypto assets on their balance sheets.
Despite both the House and Senate approving the resolution, President Biden indicated his intention to veto the legislation on May 8. His concern is that the bill would unfairly restrict the SEC's capacity to establish suitable safeguards for future crypto-related issues and will limit regulatory guidelines for digital assets.
In two short weeks, however, the political environment began to show signs of change. It remains unclear whether the President would perceive recent Congressional developments as reason enough to put a stop to the resolution or sign it into law. On May 8, 21 House Democrats allied with Republicans to push H.J.Res.109 through. A mirrored bipartisan outcome ensued in the Senate on May 16, where the resolution received a 60-38 vote.
Prior to the House approving the Financial Innovation and Technology for the 21st Century (FIT21) Act, the White House issued a statement declaring President Biden's disapproval of the bill, though he did not openly threaten to veto it. Over 70 Democrats sided with a majority of Republicans to approve the legislation, which is soon heading to the Senate.
Moe Vela, ex-Director of Administration for then-Vice President Biden relayed to Cointelegraph, "HJ 109 and its bipartisan support is a firm rebuttal of the SEC's view on crypto supervision." He further urged the Biden Administration to cooperate with the crypto industry to construct regulations and policies that are favorable to both consumers and the industry.
While Vela couldn't definitively state if the President would veto HJ 109, he strongly recommended against it. The President's decision will be unveiled within ten days (Sundays exempted), which is the maximum permitted time to either sign or veto a bill. The legislation arrived at the President's table on the same day that the SEC consented to the listing and trading of spot Ether (ETH) exchange-traded funds on U.S. exchanges for the premier time.
Published At
5/24/2024 1:17:07 AM
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