Lawmakers in the House of Representatives have received praise for passing two pro-crypto bills this week. However, there is a possibility that President Joe Biden may veto one of the legislations, which has been highly acclaimed by industry advocates.
According to congressional records, on May 23, the House presented a joint resolution to the President, urging the Securities and Exchange Commission (SEC) to revoke a rule that affects financial institutions engaging with crypto firms. The bill, known as H.J.Res.109, seeks to invalidate the SEC’s Staff Accounting Bulletin (SAB) No. 121. This bulletin requires banks to account for customers’ cryptocurrency on their balance sheets and maintain capital against them.
Before the resolution was passed by both the House and Senate, President Biden expressed his intention to veto it on May 8. He argued that the legislation would unduly restrict the SEC’s ability to ensure proper safeguards and address future issues related to crypto-assets. He also claimed that it would limit regulatory guidelines for digital assets.
However, the political landscape has undergone some changes in the past two weeks. It is uncertain whether President Biden will consider recent developments in Congress before making a decision to veto or sign the resolution into law.
On May 8, 21 Democrats in the House joined Republicans in passing H.J.Res.109. A similar bipartisan result was achieved in the Senate on May 16, as the resolution received a 60 to 38 vote in favor.
Prior to the House vote on the Financial Innovation and Technology for the 21st Century (FIT21) Act, the White House issued a statement expressing President Biden’s opposition to the bill. However, there was no explicit threat to veto it. More than 70 Democrats, along with a majority of Republicans, supported the legislation, which will soon be presented in the Senate.
Moe Vela, a former Director of Administration for then-Vice President Biden, commented on the bipartisan support for H.J.Res.109, saying it is a clear rejection of the SEC’s approach to crypto regulation. He urged the Biden Administration to collaborate with the crypto industry in developing regulations and policies that are both consumer-friendly and supportive of the industry.
Vela also mentioned that within ten days, excluding Sundays, President Biden will reveal his decision on the bill. This timeframe represents the maximum allowed time for signing or vetoing a bill. Notably, the legislation reached the President’s desk on the same day that the SEC approved the listing and trading of spot Ether (ETH) exchange-traded funds on US exchanges for the first time.
In other news, the SEC is now facing a fierce battle against the legal firepower of the crypto industry, similar to the clash between Godzilla and Kong.