Bitrabo Editorial
President Joe Biden has used his veto power to block the congressional resolution seeking to revoke the US Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) No.121, a highly controversial directive seen as unfavorable towards cryptocurrencies. Interestingly, Biden’s decision has raised eyebrows amid speculation that the current administration was attempting to court crypto voters leading up to the upcoming US general elections.
Biden Asserts Repealing SAB 121 Endangers Investors
On March 31, 2022, the SEC introduced SAB 121, instructing financial institutions holding cryptocurrencies for clients to include these assets on their balance sheets, prohibiting them from safeguarding digital assets. Criticism of SAB 121 stemmed from its perceived anti-crypto stance and its contentious nature, bypassing standard rulemaking procedures involving input from relevant stakeholders.
Despite Congress passing the repeal of SAB 121, with the House voting 228-182 and the Senate 60-38 in favor of overturning the directive, Biden has now vetoed the resolution for various reasons.
Biden highlighted that revoking the directive could detrimentally impact the SEC’s regulatory capabilities and expose US investors to potential risks. He emphasized the importance of protecting consumers and investors through appropriate measures to foster the positive aspects of crypto innovation and opportunities.
Additionally, the President acknowledged the absence of clearly defined federal regulations for the crypto market, expressing a willingness to collaborate with Congress to establish a comprehensive regulatory framework that incorporates existing authorities to support responsible digital asset development and reinforce US prominence in the global financial realm.
Biden Administration’s Stance on Crypto Under Scrutiny
With recent developments such as the approval of the Ethereum spot ETF, there were speculations that the current administration might be adopting a more lenient approach towards digital assets. However, Biden’s recent veto is likely to challenge such perceptions.
Given the substantial number of US crypto users estimated at 46 million, these individuals are anticipated to exercise their influence at the polls to safeguard their interests amidst stringent regulatory conditions. It remains to be seen whether the Biden government aims to sway these voters, especially as former President Donald Trump, Biden’s political rival and a former critic of Bitcoin, has begun endorsing cryptocurrency advancement in the country.