Many lawmakers in the House of Representatives have expressed their support for two pro-crypto bills that were passed this week. However, there is a possibility that President Joe Biden may veto one of the bills that has been praised by industry advocates.
According to congressional records, on May 23, the House presented a joint resolution to the President, urging the Securities and Exchange Commission (SEC) to overturn a rule that affects financial institutions doing business with crypto firms. The bill, known as H.J.Res.109, aims to eliminate the SEC’s Staff Accounting Bulletin (SAB) No. 121, which requires banks to include customers’ crypto on their balance sheets and maintain capital against them.
Prior to the passage of the resolution by the House and Senate, President Biden had stated his intention to veto it on May 8. He argued that the legislation would limit the SEC’s ability to regulate crypto-assets and establish appropriate guidelines for digital assets.
However, the political landscape has undergone some changes within a span of two weeks. It remains uncertain whether President Biden will take recent events in Congress into consideration when deciding whether to veto the resolution or sign it into law.
On May 8, 21 Democrats in the House joined forces with Republicans to pass H.J.Res.109. A similar bipartisan outcome occurred in the Senate on May 16, with the resolution passing by a vote of 60 to 38.
Before the House voted on the Financial Innovation and Technology for the 21st Century (FIT21) Act, the White House released a statement stating that President Biden opposed the bill, but did not explicitly threaten to veto it. The legislation, which is expected to be sent to the Senate soon, received support from over 70 Democrats and a majority of Republicans.
Moe Vela, a former Director of Administration for then-Vice President Biden, expressed his support for H.J.Res.109 and its bipartisan backing, describing it as a clear rejection of the SEC’s approach to crypto regulation. Vela urged the Biden Administration to work together with the crypto industry to develop regulations and policies that are both consumer-friendly and supportive of the industry.
Vela further commented that President Biden’s decision on the bill will be known within ten days, excluding Sundays, as this is the maximum allowable time for signing or vetoing a bill. Coincidentally, the legislation reached the President’s desk on the same day that the SEC approved the listing and trading of spot Ether (ETH) exchange-traded funds on US exchanges for the first time.
In related news, the SEC is facing a formidable challenge from the crypto industry’s legal firepower, likened to the epic battle between Godzilla and Kong.