President Biden Threatens to Veto SEC's Resolution to Overturn Crypto Regulation
According to Odaily, the U.S. House of Representatives' H.J. Pic. 109 (a decision reversing the SEC's digital asset regulation SAB 121), President Biden made a threatening statement. He stated that he could veto executive authority if there was a decision that would reverse SEC policy. The White House expressed strong opposition to House members seeking to undermine the SEC's measures to protect crypto-asset market investors and the broader financial system.
It is worth noting that under previous administrations, approximately one-third of threatened vetoes were never implemented; Therefore, this does not mean that the veto will necessarily be implemented. Given bipartisan support for the bill, Biden may need to weigh the pros and cons. Patrick Kirby, head of policy at the Crypto Innovation Council, explained: 'The president has 10 days (excluding Sundays) to sign the resolution, allowing it to become law without being signed or vetoed.'
The SEC may also decide to repeal SAB 121 to avoid forcing Biden to decide whether to use his veto power. Previously, the US Senate passed a resolution overturning SEC SAB 121 by a vote of 60-38. However, the decision could be vetoed once it reaches President Biden's desk. The SEC previously issued Staff Accounting Bulletin 121 SAB 121, which requires companies to record crypto assets they hold on their balance sheets. Critics argue that this provision is too strict and essentially prevents large custodians and companies from holding crypto assets for customers.