President Biden has vetoed a bill that would have overturned a controversial SEC policy requiring certain companies to classify crypto assets as liabilities on their balance sheets.
Biden’s Concerns
In a letter to the House of Representatives, Biden expressed concerns that removing the guidance would hinder the SEC’s ability to protect investors and implement safeguards. He believes it could undermine the SEC’s authority over accounting practices.
Republican-Led Legislation
The bill, passed by the House and Senate with bipartisan support, aimed to reverse the SEC’s guidance. However, Biden’s veto effectively kills the legislation.
Political and Regulatory Landscape
The veto comes amid heightened attention on Bitcoin and cryptocurrencies in both the political and regulatory arenas. Former President Trump has pledged support for the industry, while the SEC has recently changed its stance on Ethereum ETFs.
Biden’s Stance
Biden emphasized his administration’s commitment to a comprehensive regulatory framework for digital assets. He stressed the need for “appropriate guardrails” to protect consumers and investors while promoting innovation and US leadership in the global financial system.
