- President Biden vetoes legislation to reverse SEC crypto guidance, emphasizing investor protection.
- Uniswap founder Hayden Adams urges Biden to reconsider crypto policies.
President Biden has kept his word and vetoed crypto legislation pertaining to the SEC that just cleared the Senate and House, according to Reuters.
This legislation sought to overturn SEC regulation mandating that some businesses include cryptocurrency assets as liabilities on their balance sheets, even if they are only holding the assets on behalf of clients.
U.S. President Joe Biden on Friday vetoed a congressional disapproval of the U.S. Securities and Exchange Commission's accounting bulletin on crypto assets. "By virtue of invoking the Congressional Review Act, this Republican-led resolution would inappropriately constrain the…
— Wu Blockchain (@WuBlockchain) June 1, 2024
Legislative Backdrop and Political Dynamics
President Biden said in a letter to the House of Representatives that the SEC would be much more unable to put in place necessary protections and defend investors if these guidelines were removed.
“SAB 121 represents well-considered technical SEC staff opinions on the accounting requirements of some companies that protect crypto-assets. This Republican-led legislation would improperly limit the SEC’s authority to establish suitable safeguards and handle future crises by virtue of citing the Congressional Review Act,” Biden said.
Crypto Industry Reacts to Biden’s Veto
With 21 Democrats voting in favor of the measure, which passed the House 228 to 182 and the Senate 60 to 38 with 11 Democrats voting in favor, this veto is a major blowback against it.
Also, Biden underlined that this kind of reverse of the SEC staff’s decision runs the danger of weakening the SEC’s wider power over accounting procedures. He declared that his administration would not support policies that endangered the interests of investors and consumers.
The Role of Uniswap Founder in the Crypto Debate
The cryptocurrency sector has been outspoken about its position in light of recent events. As ETHNews previously reported, Uniswap founder Hayden Adams encouraged the Biden administration to reconsider its position on cryptocurrency regulations.
Adams’ remarks represent a larger industry opinion calling for a well-balanced regulatory structure that encourages innovation while guaranteeing investor protection.
The Biden administration declared its willingness to collaborate with Congress to create an all-encompassing and fair regulatory structure for digital assets.
With this framework, the US leadership in the international financial system is to be strengthened and the responsible growth of digital assets and payment innovation promoted. Currently, regulators and politicians are keeping a close eye on Bitcoin and other cryptocurrencies.
Last week, former President Trump joined the crypto discourse by taking donations in bitcoin and promising to back the sector and investors’ rights to self-custody their assets.
Meanwhile, the SEC has changed its mind about Ethereum ETFs, making their introduction inevitable, in line with what ETHNews previously disclosed.