Biden Vetoes Congressional Bid to Void SEC Crypto Guidance

   2024-05-31 18:05

(Bloomberg) — President Joe Biden vetoed a congressional resolution that would strike down US Securities and Exchange Commission guidance that the crypto industry says has stymied its ability to work with banks.

The guidance — known as staff accounting bulletin No. 121 — has also drawn pushback from banks since it was published in 2022. Lenders have said it effectively restricts them from scaling up services to hold digital assets on behalf of customers by making it too costly.

The resolution – which passed the Senate with the support of 11 Democrats – would have invalidated the SEC bulletin. Lawmakers backing the resolution, which passed the House in a 228-182 vote, said the guidance limits options for Americans who want to stow digital assets at traditional banks.

“My administration will not support measures that jeopardize the well-being of consumers and investors,” Biden said in a veto message released Friday evening. “Appropriate guardrails that protect consumers and investors are necessary to harness the potential benefits and opportunities of crypto-asset innovation.”

Read More: Senate Votes to Scrap SEC Crypto Guidance, Setting Up Veto

In his statement, Biden added that he was “eager to work with the Congress to ensure a comprehensive and balanced regulatory framework for digital assets.”

While the White House earlier this month said it opposed legislation that passed the House establishing a regulatory framework for digital assets — arguing it lacked sufficient consumer and investor protections — it stopped short of a full veto threat, indicating the president was open to negotiations on legislation governing the issue.

–With assistance from Amanda Iacone, Matthew Bultman, Andrew Ramonas and Ben Bain.

More stories like this are available on

©2024 Bloomberg L.P.

You are on Mint! India’s #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.


Published: 01 Jun 2024, 06:36 AM IST

Original Source