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Biden Vetoes Bipartisan Bill To Overturn SEC's Crypto Custody Rules

Published 06/06/2024, 20:12
Updated 06/06/2024, 21:41
© Reuters.  Biden Vetoes Bipartisan Bill To Overturn SEC\'s Crypto Custody Rules

Benzinga - by Abbey Higginbotham, Benzinga Staff Writer.

On Monday, President Joe Biden has vetoed a bipartisan resolution aimed at overturning the Securities and Exchange Commission's (SEC) crypto custody guidance. The resolution passed both the House and the Senate and sought to invalidate the SEC’s Staff Accounting Bulletin (SAB) 121.

Presidential Veto Explained In a letter to the House of Representatives, Biden stressed the importance of the SEC's guidance in safeguarding investors. “SAB 121 reflects considered technical SEC staff views regarding the accounting obligations of certain firms that safeguard crypto-assets,” Biden stated. He emphasized that the resolution would “inappropriately constrain the SEC’s ability to set forth appropriate guardrails and address future issues.”

Biden further clarified, "This reversal of the considered judgment of SEC staff in this way risks undercutting the SEC’s broader authorities regarding accounting practices. My Administration will not support measures that jeopardize the well-being of consumers and investors."

Legislative Background The Republican-led legislation garnered notable bipartisan support. It passed the House with a 228 to 182 vote, including backing from 21 Democrats. The Senate approved the bill with a 60 to 38 vote, with eleven Democrats supporting the measure.

Political and Regulatory Context This veto arrives amid heightened scrutiny of cryptocurrencies such as Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH). The Biden administration's stance on digital assets is closely watched, especially with the 2024 election on the horizon. Voters have been increasingly considering candidates’ positions on cryptocurrency regulation.

Meanwhile, former President Donald Trump, Biden’s anticipated Republican challenger, strongly supports the crypto industry. Recently, Trump began accepting crypto donations and pledged to uphold investors’ rights to self-custody their assets.

Benzinga’s Future of Digital Assets Amid this regulatory backdrop, the upcoming Benzinga's Future of Digital Assets event in New York City on Nov. 19, 2024, is poised to be a crucial gathering. This one-day event will bring together digital asset innovators and institutional investors at Convene, 225 Liberty Street.

Attendees can engage in extensive networking, attend executive roundtables, and participate in 1:1 meetings, making it an essential event for those involved in the digital assets space.

Since its inception in 2022, the conference has consistently attracted thousands of participants. The 2024 edition promises significant improvements in the agenda and will welcome a diverse array of investors, founders, operators, and thought leaders globally. This year’s conference is set to offer unparalleled networking opportunities and deal-making sessions, reinforcing its reputation as a pivotal event in the digital assets industry.

Now Read: Kamala Harris Gets Her Own Cannabis Strain ‘Kamala Kush’ Whether She Likes It Or Not: Watch Jimmy Kimmel Break The News To Her

Image: President Joe Biden. Photo via Shutterstock

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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