President Joe Biden is facing a decision on whether to veto a piece of legislation that has been praised by industry advocates in the crypto space. The House of Representatives recently passed a joint resolution, H.J.Res.109, calling for the Securities and Exchange Commission (SEC) to strike down a rule that affects financial institutions doing business with crypto firms.
The rule in question, SEC’s Staff Accounting Bulletin (SAB) No. 121, requires banks to keep customers’ crypto on their balance sheets with capital maintained against them. Industry advocates argue that this rule hinders innovation and growth in the crypto sector.
President Biden initially expressed his intention to veto the resolution, citing concerns that it would limit the SEC’s ability to regulate crypto-assets and address future issues related to digital assets. However, the political landscape shifted slightly as the resolution garnered bipartisan support in both the House and the Senate.
On May 8, 21 Democrats in the House joined with Republicans to pass H.J.Res.109, and a similar bipartisan result followed in the Senate on May 16. Despite the White House’s opposition to the bill, it passed with a majority of votes in both chambers.
Moe Vela, a former Director of Administration for then-Vice President Biden, emphasized the importance of collaboration between the Biden Administration and the crypto industry in developing consumer-friendly and industry-supportive regulations and policies. Vela urged President Biden not to veto the resolution, highlighting the bipartisan support it has received.
President Biden now has ten days, excluding Sundays, to decide whether to sign or veto the bill. The legislation arrived on his desk on the same day the SEC approved spot Ether (ETH) exchange-traded funds for listing and trading on U.S. exchanges for the first time.
The outcome of President Biden’s decision will have significant implications for the crypto industry and its regulatory environment. As the debate continues, stakeholders are closely watching to see how the administration will navigate the complex intersection of technology, finance, and regulation in the digital asset space.