Last week, President #JoeBiden vetoed a bipartisan resolution intended to reverse a Securities and Exchange Commission (SEC) rule, which critics argued discouraged banks from providing crypto custody services.
The contentious Staff Accounting Bulletin (SAB) 121 has been a point of debate for over a year. Biden had previously signaled his intent to veto the bill following its passage in the House with a 228-182 vote. The Senate followed, with 12 Democrats and most Republicans voting to repeal the policy 60-38.
In his veto statement, Biden criticized the resolution for improperly constraining the SEC’s regulatory capabilities. He emphasized the need for the SEC to maintain a robust financial regulatory framework to prevent market instability.
There is another bill related to crypto regulation called FIT 21, which aims to establish a federal regulatory framework between the SEC and CFTC for digital assets that is generally viewed as positive for the crypto industry. Although Biden expressed openness to collaborate with Congress on a balanced regulatory framework for digital assets, he remains opposed to FIT21, but he has not yet threatened to veto it. FIT21 recently passed the House with two-thirds support across the aisle, and moves onto the Senate in its next phase.
