Bittime - The President of the United States, Joe Biden, has rejected a resolution seeking to overturn the SEC's promulgation of crypto custody accounting standards known as SAB 121.
In a letter published on the White House website, Biden emphasized that his administration would not support measures that could harm the interests of consumers and investors.
What is SAB 121?
SAB 121, first issued in 2022, has sparked controversy over the past year. This standard requires crypto custodians to record customers' cryptocurrency as a liability on their balance sheets.
The move is aimed at increasing transparency and protecting investors by providing a clear view of the risks taken by crypto custodian companies.
However, the crypto industry is concerned that these policies could prevent banks and other financial institutions from protecting digital assets, which could ultimately limit growth and innovation in the sector.
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Repeal of SAB 121 by Joe Biden
However, Joe Biden used his veto to reject a resolution passed by the US Senate and House of Representatives that aimed to repeal SAB 121.
In his letter to the US House of Representatives, Biden stated, "My administration will not support measures that endanger the well-being of consumers and investors. To capitalize on the innovation opportunities of crypto assets, appropriate safeguards are needed to protect consumers and investors."
This veto override requires a two-thirds majority in both houses of Congress to be overridden. Previously, the US House of Representatives had voted 228-182 to pass this resolution, with most of the support coming from the Republican Party although there were 21 Democrats who also supported it.
A week later, the Senate voted 60-38 with several Democrats, including Senate Majority Leader Chuck Schumer, supporting the resolution.
Why Biden Rejects Repeal of SAB 121?
Biden's main reason for rejecting this resolution was his belief that relaxing SEC regulations would introduce substantial financial instability and market uncertainty.
In an administration policy statement released last month, the White House asserted that limiting the SEC's ability to maintain a comprehensive and effective financial regulatory framework for crypto assets would introduce substantial financial instability and market uncertainty.
Biden has previously used his veto power to reject measures passed by the Senate and House with bipartisan support. For example, in May, the president rejected a measure to repeal the joint employer rule that had passed the Senate and House by bipartisan margins.
Also Read: Get to know the Securities and Exchange Commission (SEC) and its role
Impact on the Crypto Industry
This veto override had a significant impact on the crypto industry. With SAB 121 remaining in effect, companies holding cryptocurrency on behalf of customers must adhere to strict accounting standards, recording such assets as liabilities on their balance sheets. This could increase operational costs and tighten regulatory oversight of these companies.
However, on the other hand, it also increases investor confidence by ensuring that there is greater transparency and better risk disclosure. Investors can have a clearer view of the risk exposure of the companies they entrust to hold their digital assets.
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US Government Commitment to Protect Crypto Investors
President Joe Biden's decision to reject a resolution aimed at repealing SAB 121 shows his administration's commitment to consumer and investor protection in the crypto sector.
Although controversial, this policy emphasizes the need for transparency and risk disclosure to maintain financial stability and protect investors. With increasing interest and adoption of crypto assets, it is important for regulators and governments to strike a balance between encouraging innovation and ensuring appropriate safeguards are in place to protect all parties involved.
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How to Buy Crypto with Bittime
You can buy and sell crypto assets in an easy and safe way through Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Read Also:
Joe Biden and the Dynamics of Meme Coins Ahead of the 2024 American Election
US Senate Overturns SEC's Controversial Crypto Asset Accounting Rule
US Congress Shocks the World: Cancellation of SAB 121 Gives Hope for Bitcoin in America!
DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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