FINANCE
When will the House of Representatives review the cryptocurrency regulation bill that Biden vetoed?
The incumbent president of the United States took the decision at the end of May, but the controversial bill is coming back for scrutiny.
The U.S. House of Representatives is poised to reevaluate a bill on July 9 or later that previously faced the presidential veto hammer in May. The bill aims to overturn the Securities and Exchange Commission’s (SEC) contentious directive, known as Staff Accounting Bulletin No. 121 (SAB 121). This directive, which ruffled more than a few feathers, advises financial institutions holding crypto on behalf of customers to treat these assets as their own in their balance sheets.
Biden crypto veto under threat
President Joe Biden wielded his veto power decisively against the bill, citing concerns over potential constraints on the SEC’s regulatory capabilities. According to Biden, such limitations could undermine the establishment of necessary guardrails critical for managing future financial landscapes and ensuring consumer protection.
His veto, articulated through a White House statement, emphasized the administration’s stance against jeopardizing consumer and investor well-being, marking a significant moment of contention between the executive branch and cryptocurrency advocates.
How much support does crypto bill require?
Originally, the bill garnered bipartisan support, sailing through both the House and the Senate. However, the challenge now lies in mustering a two-thirds majority in both chambers to override the president’s veto – a feat easier said than done in a politically divided environment. The measure’s proponents argue that SAB 121 unnecessarily complicates and deters traditional financial entities from providing crypto custody services, which could stifle innovation and investment within the sector.
The SEC’s introduction of SAB 121 in March 2022 was met with vocal opposition from various quarters, including House majority whip Tom Emmer, who labeled it “illegal” and a “violation” of the SEC’s statutory mission. Critics argue that the guidance oversteps by imposing stringent requirements on how banks should handle crypto assets, potentially chilling the burgeoning crypto custody market.