President Biden Vetoes Pro-Crypto Bill, Maintains SEC Stand on Bitcoin (BTC) Regulation.
President Biden Vetoes Decision to Withdraw SEC Crypto Custody Directive
In a decisive move, President Joe Biden vetoed a bipartisan resolution to withdraw the SEC's Staff Accounting Bulletin (SAB) 121. This bulletin has been a point of contention, with critics claiming it discourages banks from offering crypto custody services. The veto underscores the administration's determination to maintain tight regulatory oversight of the rapidly evolving crypto market.
Effects of Veto on Crypto Industry
The veto has significant ramifications for the crypto industry, particularly regarding how financial institutions interact with digital assets. The SEC's SAB 121 guidelines contain rules that critics view as overly restrictive, potentially stifling innovation and limiting banks' abilities to provide custody services for cryptocurrencies. By vetoing this resolution, President Biden stated his commitment to maintaining strong regulatory frameworks that he believes are necessary to protect consumers and ensure market stability.
The Future of Crypto Regulation: The FIT21 Act
Although President Biden vetoed the resolution on SAB 121, he has expressed willingness to work with Congress on a balanced regulatory framework for digital assets. This is reflected in the ongoing debate around the Financial Innovation and 21st Century Technology Act (FIT21). The FIT21 Act aims to create a federal framework for regulating digital assets and has received significant bipartisan support. However, Biden has also expressed reservations about this legislation and reflects a cautious approach to crypto regulation.
