It is a rare moment for the crypto industry to support the US Securities and Exchange Commission (SEC) amidst regulation issues. President Joe Biden's decision to veto the SAB 121 bill is not a welcome move from the country's leader.
Now, he is facing anger and scrutiny from the cryptocurrency industry, which was closely following this bill and known for sharing its support as it passed through the House and Senate.
President Biden Vetoes the SEC's SAB 121
President Joe Biden's response to the House and Senate-passed bill from the SEC, a.k.a. the Staff Accounting Bulletin No. 121 (SAB 121), was a veto, according to a new release from the White House.
The decision from Biden claimed that approving this would "inappropriately constrain" the SEC "to address future issues," as well as set "appropriate guardrails."
Biden also addressed that this bill's passing into law would "undercut" the SEC's authorities in the financial sector.
Ultimately, Biden said his administration would not support these laws that could "jeopardize the well-being of consumers and investors."
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Crypto Industry Supports SAB 121
According to CoinDesk, SAB 121 is SEC accounting guidance that will allow financial institutions that keep cryptocurrencies for customers to keep these digital assets on their balance sheets. However, the crypto industry supports this bill, with reports claiming that they are angry with this latest decision to veto it.
Cryptocurrency and the US
The long-time debate about cryptocurrency regulations in the US has seen much from either side, especially as the SEC intends to regulate the blockchain for its continued operations in the US.
However, while there are several rules and regulations behind it now, there are still a lot of grounds to cover, especially one that will appease the crypto industry in the country.
One of the most significant moves from a crypto exchange company was when Coinbase sued the SEC for its lack of response regarding the cryptocurrency regulations in the US. Coinbase long sought "regulatory clarity" from the governing body but was not given clear information about it.
That being said, last year saw a massive crackdown against cryptocurrency firms operating in the country, with the SEC's latest target being the biggest platform in the world, Binance. It is known that this crackdown led Binance to pay off a settlement to the US for its malpractices, which also led to its CEO and founder, Changpeng Zhao, getting convicted.
The cat-and-mouse relationship between the SEC and the crypto industry has been ongoing for years, and while some companies are working closely with the agency, some only await what they have to offer.
That being said, their differences were set aside on SAB 121, one that would also benefit the crypto industry. However, that may take a detour for now as it was vetoed by POTUS Biden, which angered many.
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