Biden

Joe Biden

Many House of Representatives lawmakers praised this week’s passage of two pro-crypto bills, but President Joe Biden may still veto one piece of legislation lauded by industry advocates.
According to congressional records, on May 23, the House <a href="https://www.congress.gov/bill/118th-congress/house-joint-resolution/109/all-actions" target="_blank" rel="noopener noreferrer nofollow">presented</a> to the U.S. President a joint resolution calling for the Securities and Exchange Commission (SEC) to strike down a rule affecting financial institutions doing business with crypto firms. The bill, H.J.Res.109, would strike down the SEC’s Staff Accounting Bulletin (SAB) No. 121, which requires banks to keep customers’ crypto on its balance sheets, with capital maintained against them.
Before the House and Senate passed the resolution, President Biden on May 8 <a href="https://cointelegraph.com/news/president-biden-veto-resolution-sec-accounting-crypto" rel="noopener noreferrer nofollow">said he intended</a> to veto it. He claimed the legislation would “inappropriately constrain the SEC’s ability to ensure appropriate guardrails and address future issues related to crypto-assets” and limit regulatory guidelines for digital assets.
Related: <a href="https://cointelegraph.com/news/united-states-joe-biden-sab-121-accounting-crypto-law" rel="noopener noreferrer nofollow">Biden may rethink SAB 121 vote veto due to political support for crypto</a>
However, within roughly two weeks, the political landscape had shifted slightly. It was unclear whether President Biden would factor in recent events coming from Congress to veto the resolution or sign it into law.
On May 8, 21 Democrats in the House sided with Republicans to pass&nbsp;H.J.Res.109. A similar bipartisan result <a href="https://cointelegraph.com/news/senate-resolution-sec-crypto-rule-passes" rel="noopener noreferrer nofollow">followed in the Senate</a> on May 16, as the resolution passed with a 60 to 38 vote.
Before the House voted on the Financial Innovation and Technology for the 21st Century (FIT21) Act, the White House released a statement saying President Biden <a href="https://cointelegraph.com/news/biden-president-sec-gary-gensler-fit21-house-vote" rel="noopener noreferrer nofollow">opposed the bill</a>&nbsp;— but did not explicitly threaten to veto it. More than 70 Democrats&nbsp;<a href="https://cointelegraph.com/news/fit21-crypto-bill-house-vote-bipartisan" rel="noopener noreferrer nofollow">joined with a majority of Republicans</a> to pass the legislation, which is set to go to the Senate soon.
“HJ 109 and its bipartisan support are a clear rebuke of the SEC’s vision for crypto oversight,”&nbsp;Moe Vela, a former Director of Administration for then-Vice President Biden, told Cointelegraph. “I highly encourage the Biden Administration to collaborate with the crypto industry in the development of consumer-friendly AND industry-supportive regulations and policies.”
Vela added:
<blockquote>
 “I cannot predict whether the President will veto HJ 109, but I highly encourage him not to do so.”
</blockquote>
Crypto proponents will know President Biden’s course of action within ten days, excluding Sundays — the maximum allowable time to sign or veto a bill. The legislation came to his desk the same day the SEC approved spot Ether (<a href="https://cointelegraph.com/ethereum-price" rel="noopener noreferrer nofollow">ETH</a>) exchange-traded funds for <a href="https://cointelegraph.com/news/sec-spot-ether-etf-approved" rel="noopener noreferrer nofollow">listing and trading on U.S. exchanges</a> for the first time.
Magazine: <a href="https://cointelegraph.com/magazine/godzilla-vs-kong-can-sec-prevail-against-crypto-legal-firepower/" rel="noopener noreferrer nofollow">Godzilla vs. Kong: SEC faces fierce battle against crypto’s legal firepower</a>

Resolution overturning SEC crypto rule is on Biden’s desk — Now what?

Cointelegraph

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