House Fails to Override Biden’s Veto on Crypto Rule – The UCW Newswire
The U.S. House of Representatives failed to secure enough votes to overturn President Joe Biden’s veto of a resolution regarding a Securities and Exchange Commission (SEC) rule on how banks account for cryptocurrency on their balance sheets. This unsuccessful vote means that the veto will remain in effect, affecting how U.S. banks can act as custodians for crypto assets.
On July 11, 228 House members attempted to override Biden’s veto of H.J.Res. 109, which aimed to nullify SEC Staff Accounting Bulletin (SAB) No. 121. However, they fell short by 60 votes of the required two-thirds majority. Consequently, U.S. banks will still be limited in their ability to serve as crypto custodians for their clients, unless new legislation is introduced.
Representative Maxine Waters criticized SAB 121, stating, “The crypto industry and its allies have long criticized the SEC for not providing clear regulations for crypto assets.” She added, “It’s just that the industry did not like the response they received.”
President Biden had announced his decision to veto H.J.Res. 109 on May 8, just before it was passed by the House, with the Senate concurring on May 16. Despite a majority in both chambers, Biden’s veto on May 31 prevented the resolution from becoming law.
This failed veto override continues Biden’s string of successful vetoes since taking office in 2021. Critics have condemned his opposition to crypto-friendly legislation like the joint resolution, as well as his administration’s disapproval of the FIT21 Act, aimed at clarifying digital asset regulations.
While reports suggested Biden might attend a recent roundtable discussion on crypto policy, he did not participate. The meeting involved lawmakers like Ro Khanna and Joe Neguse, along with industry leaders, aiming to address crypto issues in a bipartisan manner.
Former President Donald Trump’s upcoming attendance at the Bitcoin Conference signifies a shift in his stance on bitcoin, potentially influencing Republican Party views on the cryptocurrency. This move could impact Biden’s approach to crypto-friendly policies, with Trump’s involvement potentially appealing to single-issue crypto voters.
Scott Melker speculated on Trump’s role at the conference, suggesting it could involve fundraising or a keynote speech. Melker highlighted a Democratic roundtable on crypto policy hosted by Congressman Ro Khanna, indicating a recognition of the crypto community’s growing influence.
Trump’s embrace of bitcoin and broader crypto interests could prompt the Biden administration to reconsider its stance on digital assets, potentially leading to more favorable policies for the industry.
As the cryptocurrency regulation debate continues, the evolving political landscape around digital assets will have repercussions on both the crypto market and the wider financial sector.
David Thompson
Financial Desk
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