The approval of two pro-crypto bills by the House of Representatives this week received praise from many lawmakers. However, there is a possibility that President Joe Biden might veto one of the bills that has been hailed by industry advocates.
Based on congressional records, a joint resolution (H.J.Res.109) was presented to the President on May 23, urging the Securities and Exchange Commission (SEC) to revoke a rule that affects financial institutions involved in crypto business. The rule in question is the SEC’s Staff Accounting Bulletin (SAB) No. 121, which mandates banks to include customers’ crypto holdings on their balance sheets and maintain capital against them.
President Biden had previously expressed his intention to veto the resolution on May 8, arguing that it would limit the SEC’s ability to regulate digital assets and establish proper guidelines for the industry.
However, there has been a slight shift in the political landscape over the course of two weeks. It remains uncertain whether President Biden will consider recent events in Congress 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. The resolution also received bipartisan support in the Senate on May 16, with a vote of 60 to 38 in favor of passing it.
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. However, there was no explicit threat of a veto. The legislation, which is expected to reach the Senate soon, was passed with the support of over 70 Democrats and a majority of Republicans.
Moe Vela, a former Director of Administration for then-Vice President Biden, stated that H.J.Res.109 and its bipartisan support are a clear indication of opposition to the SEC’s approach to crypto regulation. Vela encouraged the Biden Administration to collaborate with the crypto industry 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 period will determine the course of action he will take. It is worth noting that the bill reached his desk on the same day that the SEC approved spot Ether (ETH) exchange-traded funds for listing and trading on U.S. exchanges, marking a significant milestone for the crypto industry.
In the face of crypto’s legal firepower, the SEC is now facing a fierce battle, reminiscent of Godzilla vs. Kong.