Joe Biden has vetoed bill aimed at overturning SEC crypto accounting standards

• Biden vetoes bill targeting SEC crypto rules, citing concerns over regulatory authority.
• Crypto industry criticizes Biden’s decision, calls it setback for innovation and financial freedom.
• The veto raises questions about Biden’s stance on crypto regulation and engagement with industry.

U.S. President Joe Biden has taken a decisive stance in the ongoing debate surrounding cryptocurrency regulation by vetoing the bill that aimed at overturning a Securities and Exchange Commission (SEC) regulation regarding crypto accounting standards.

The regulation in question, known as SAB 121, set specific guidelines for firms holding cryptocurrency assets, requiring them to record these assets as liabilities on their balance sheets.

Joe Biden upholds SEC’s authority over accounting practices

In an official statement dated May 31st, President Biden emphasized the importance of maintaining the SEC’s authority over accounting practices, stating that a reversal of the SEC’s decision could potentially undermine broader regulatory efforts aimed at protecting consumers and investors.

Biden’s veto underscores his administration’s commitment to implementing regulatory guardrails that ensure the safety and stability of financial markets while also acknowledging the potential benefits of crypto-asset innovation.

As previously reported, the bill, which sought to repeal the SEC’s cryptocurrency accounting guidelines, had garnered bipartisan support in both the House and Senate.

However, despite the House passing the measure with a 228-182 vote and the Senate voting 60 to 38 in favor of the repeal, the veto requires a two-thirds majority from both houses to be overturned.

Backlash over Biden’s decision to veto the bill

The decision to veto the bill has sparked immediate backlash from various quarters, particularly within the cryptocurrency industry.

Critics argue that the veto represents a setback for innovation and financial freedom, with some describing it as a “slap in the face” to those advocating for a more flexible regulatory approach.

The Blockchain Association, a prominent crypto advocacy group, expressed disappointment with the administration’s decision, highlighting the bipartisan consensus reached in both chambers of Congress.

Similarly, Cody Carbone, Chief Policy Officer at the Digital Chamber, disparaged the veto, emphasizing its potential chilling effect on innovation within the crypto space.

The veto has also raised concerns within the crypto community regarding the administration’s stance on cryptocurrency regulation.

Despite speculation that the Biden campaign had been engaging with crypto industry stakeholders to adopt a more pro-crypto stance, the veto suggests a different approach.

In response to the veto, Moe Vela, a senior advisor to Unicoin and former senior advisor to Biden, called for a more nuanced discussion on the integration of crypto into the financial system, urging both candidates to articulate their perspectives and plans for the future of crypto regulation.

Sheila Warren, CEO of the Crypto Council, expressed displeasure with the veto, suggesting that publicly stated positions on crypto regulation could be difficult to walk back once articulated.

As the cryptocurrency regulation debate continues in the U.S., all eyes now turn to both houses to see whether they can raise a two-third majority too overturn the president’s veto.