The Biden administration said the resolution would hamper the SEC's ability to set regulatory rules and resolve issues.

On May 31, U.S. President Joe Biden exercised his veto over a resolution seeking to repeal H.J. Res. 109, the U.S. Securities and Exchange Commission’s (SEC) controversial SAB 121 rule.

Biden pointed out that SAB 121 reflects the SEC team's well-thought-out professional views. He also emphasized that this resolution will weaken the SEC's ability to formulate regulatory measures and respond to future problems and risks, thereby weakening the agency's authority in accounting matters.

Biden has differences with both parties

He stressed the importance of this provision in safeguarding the public interest and made it clear that:

“My administration will not support any measures that would harm the well-being of consumers and investors.”

President Biden said his administration plans to work with Congress to build a comprehensive and balanced system of cryptocurrency regulation that builds on existing regulations while also encouraging and supporting innovation in the United States.

Biden highlighted the partisan divide on the issue in his veto statement by noting that H.J. Res. 109 was a "Republican-led resolution."

In a break with President Biden's position, lawmakers supporting the resolution said in a May 30 letter that the bill was a bipartisan effort and called on the president not to veto it.

Although the resolution claims to be bipartisan, voting records show that Republican support for the bill is actually stronger. In the Senate, 48 of the 60 votes in favor came from Republicans; in the House of Representatives, 207 of the 228 votes in favor also came from Republicans.

Disputes under SAB 121

SAB 121 requires financial institutions and companies that are responsible for the safekeeping of customers' digital assets to include these assets on their balance sheets and disclose certain information.

Congressman Patrick McHenry, who supports repealing SAB 121, argues that the rules are effectively a ban. He also noted that the SEC ignored the Administrative Procedure Act (APA) when developing the rules because they did not solicit feedback from the public.

Meanwhile, Democratic Senator Elizabeth Warren argued that SAB 121 is not as restrictive as its critics say. Meanwhile, the American Bankers Association (ABA), while arguing that the rules are indeed restrictive, prefers to tweak them rather than overturn them outright.

Biden’s veto does not directly address these issues, but only targets one legislative attempt to overturn SAB 121, leaving open the possibility of future challenges.

Conclusion:

President Biden's veto decision reflects his support for the SEC's rulemaking, especially on key issues involving financial stability and consumer protection. Although there is some bipartisan support in Congress for efforts to overturn SAB 121, the Biden administration clearly prefers to maintain the existing regulatory framework and seek to find a balance between protecting investors and promoting innovation.

In the future, as the cryptocurrency market continues to grow and change, the regulations governing this space are likely to continue to evolve to accommodate new challenges and opportunities. #拜登 #SEC #SAB121