Biden Rejects Bill Allowing Banks to Custody Cryptocurrencies
President Joe Biden has rejected/vetoed a bill that would have let financial companies hold Bitcoin and other cryptocurrencies for their customers. The bill aimed to overturn a rule by the SEC called SAB 121. This rule requires banks to put customers' digital assets on their balance sheets, which some argue makes it harder and riskier for banks to deal with cryptocurrencies.
Supporters of the bill said the SEC rule puts unnecessary burdens on financial institutions and could put customers' assets at risk if the bank goes bankrupt. They believe that allowing banks to hold cryptocurrencies is important for the future of digital money.
However, the Biden administration argues that the SEC rule is necessary to protect investors and the financial system from the unique risks of cryptocurrencies. They believe that without this rule, there could be more financial instability and less protection for investors.
The veto has been criticized by those who support the growth of cryptocurrencies, who feel it will hinder financial innovation in the U.S.
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