President Joe Biden has vetoed a congressional resolution aimed at overturning US Securities and Exchange Commission guidance that the cryptocurrency industry claims is hindering its cooperation with banks, according to Bloomberg.
The directive, known as Staff Accounting Bulletin No. 121, has faced opposition from banks since its issuance in 2022. Banks say the directive makes it too expensive to expand digital asset holding services on behalf of clients.
The resolution, which passed the Senate with the support of 11 Democrats, seeks to invalidate the SEC's prospectus. It also passed the House of Representatives by a vote of 228 to 182, with lawmakers asserting that the directive restricts Americans' ability to store digital assets in traditional banks.
“My administration will not support actions that jeopardize the well-being of consumers and investors,” Biden said in his veto message Friday evening. “Appropriate guardrails that protect consumers and investors are essential to harnessing the potential benefits and opportunities of digital asset innovation.”
Biden also expressed his readiness to cooperate with Congress to develop a comprehensive and balanced regulatory framework for digital assets.
Earlier this month, the White House expressed opposition to House-passed legislation that would create a regulatory framework for digital assets, arguing that it lacks adequate protections for consumers and investors. But the White House has not issued a full veto threat, suggesting the president is open to negotiating legislation on the issue.#Binance