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 bills, which has been highly regarded 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 impacts financial institutions involved in crypto businesses. 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 assets on their balance sheets and allocate capital against them.
President Biden had previously expressed his intention to veto the bill on May 8, stating that it would restrict the SEC’s ability to establish appropriate regulations and address future issues related to crypto-assets. However, the political landscape has since undergone some changes, making it unclear whether President Biden will consider recent developments in Congress before 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 result was seen in the Senate on May 16, with the resolution receiving a 60 to 38 vote.
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, although it did not explicitly threaten a veto. Despite this, over 70 Democrats, along with a majority of Republicans, supported the legislation, which will soon be presented to the Senate.
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 serves as a clear rejection of the SEC’s approach to crypto regulation. Vela urged the Biden Administration to collaborate with the crypto industry in creating 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. The legislation arrived on his 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 an unrelated matter, the SEC is facing a tough battle against the legal firepower of the crypto industry, just like in the movie “Godzilla vs. Kong.”