Biden Administration Opposes Joint Resolution Impacting SEC's Crypto Policy
Summary:
President Joe Biden's administration has announced opposition to a joint resolution (H.J.Res. 109) concerning SEC's crypto policy that requires banks to include customers' digital assets in their balance sheets. The administration argues that overturning SEC's Staff Accounting Bulletin (SAB) No. 121 may interfere with SEC's efforts to protect investors and introduce financial instability. While Democratic and Republican leaders express varied views in the House, the final decision on the resolution has been postponed.
President Joe Biden's administration in the U.S. has released an official statement indicating a potential veto by the president on a joint resolution related to cryptocurrency policy under the administration of the Securities and Exchange Commission (SEC). The White House's communication, dated May 8, expressed significant opposition to attempts by House Representatives to push through this joint resolution, arguing it could hamper the SEC's initiatives in "safeguarding investors in the realm of Cryptocurrency and protecting the wider financial framework." H.J.Res. 109, first proposed in the House in February, seeks the repeal of Staff Accounting Bulletin (SAB) No. 121 from the SEC, which mandates banks to include digital assets of customers in their balance sheets and maintain sufficient capital against these assets.
According to the Biden administration, SAB 121 was implemented in response to verifiable issues revolving around technology, regulation, and law that has led to considerable consumer losses. The administration further commented that the use of the Congressional Review Act could restrict the SEC's capabilities in implementing necessary measures and addressing future problems related to digital assets, which will lead to financial instability and market uncertainties.
House Financial Services Committee leaders from both the Democratic and Republican parties voiced their opinions in the House on May 8. Advocating for H.J.Res. 109, Republican Representative Patrick Henry argued that under SAB 121, SEC exerts control over how financial corporations secure Americans' digital assets. He stated that to ensure Americans' safe and secure engagement with digital assets, banks, as some of the most stringently regulated entities in the nation, are arguably the aptest option.
His sentiments were countered by Representative Maxine Waters, a Democrat and high-ranking member of the House committee, who supported the SEC accounting rule for its contribution to driving transparency in the digital asset sector. She echoed the SEC's statements that the rule confronted the unique challenges associated with cryptocurrencies, deeming Representative Henry's actions detrimental and politically driven. She claimed that such disclosure will serve as a shield against fraudulent activities and mismanagement of digital assets, like in the case with the downfall of significant cryptocurrency firms such as FTX.
Debates in the House over the resolution appeared to conclude in favor of H.J.Res. 109 through a voice vote. However, a formal vote count was requested by Representative McHenry, and the Chairman of the House delayed the proceeding on this resolution until a future date. Per the U.S. Constitution, President Biden's veto can be overruled by the House through a two-thirds majority vote.
Published At
5/8/2024 11:14:27 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.