After the U.S. House of Representatives postponed proceedings on a resolution overturning an SEC policy affecting crypto, President Joe Biden said he would veto the measure.
United States President Joe Biden’s office has issued a statement informing lawmakers and the public that his administration plans to veto a joint resolution affecting crypto policy at the Securities and Exchange Commission (SEC) if it comes to his desk.
In a May 8 statement, the White House said it “strongly opposes” members of the House of Representatives seeking to pass a joint resolution it claims would disrupt the SEC’s efforts “to protect investors in crypto-asset markets and to safeguard the broader financial system.” H.J.Res. 109, introduced in the House in February, would overturn the SEC’s Staff Accounting Bulletin (SAB) No. 121, which requires banks to keep customers’ digital assets on its balance sheets, with capital maintained against them.
“SAB 121 was issued in response to demonstrated technological, legal, and regulatory risks that have caused substantial losses to consumers,” said the Biden administration. “By virtue of invoking the Congressional Review Act, it could also inappropriately constrain the SEC’s ability to ensure appropriate guardrails and address future issues related to crypto-assets including financial stability. Limiting the SEC’s ability to maintain a comprehensive and effective financial regulatory framework for crypto-assets would introduce substantial financial instability and market uncertainty.”