The passing of two pro-crypto bills in the House of Representatives this week received praise from many lawmakers. However, there is a possibility that President Joe Biden may veto one of the bills, which has been lauded by industry advocates.
According to congressional records, on May 23, a joint resolution was presented to President Biden by the House, calling for the Securities and Exchange Commission (SEC) to revoke a rule that affects financial institutions conducting business with crypto firms. The bill, known as H.J.Res.109, aims to eliminate the SEC’s Staff Accounting Bulletin (SAB) No. 121, which requires banks to include customers’ crypto holdings on their balance sheets and maintain capital against them.
President Biden had previously stated his intention to veto the resolution on May 8, claiming that it would limit the SEC’s ability to regulate digital assets and address future issues related to crypto-assets. However, the political landscape has since undergone some changes, and it is unclear whether President Biden will take recent events into account when deciding whether to veto or sign the resolution into law.
On May 8, 21 Democrats in the House joined forces with Republicans to pass H.J.Res.109. A similar bipartisan outcome was seen in the Senate on May 16, as the resolution passed with a vote of 60 to 38.
Before the House voted on the Financial Innovation and Technology for the 21st Century (FIT21) Act, the White House released a statement expressing President Biden’s opposition to the bill, but without explicitly threatening a veto. The legislation, which is expected to be sent to the Senate soon, garnered support from over 70 Democrats and a majority of Republicans.
Moe Vela, a former Director of Administration for then-Vice President Biden, commented on the bipartisan support for H.J.Res.109, stating that it is a clear rejection of the SEC’s approach to crypto oversight. Vela urged the Biden Administration to collaborate with the crypto industry in order to develop regulations and policies that are both consumer-friendly and supportive of the industry.
President Biden has a maximum of ten days, excluding Sundays, to make a decision on the bill. This timeline coincides with the SEC’s approval of spot Ether (ETH) exchange-traded funds for listing and trading on U.S. exchanges, which happened on the same day the legislation reached President Biden’s desk.
In the face of crypto’s legal firepower, the SEC is now facing a fierce battle, likened to the clash between Godzilla and Kong.