Just as the U.S. House of Representatives approved a resolution calling on the Securities and Exchange Commission to reverse its anti-crypto banking policies, the White House pre-emptively declared it would veto the resolution if it passes. did.
The resolution to overturn the 2022 SEC bulletin passed 228-182 on Wednesday with bipartisan support, earning praise from crypto advocates inside and outside of Capitol Hill.
“With the resolution of disapproval, the House takes a position to ensure that such significant changes go through the proper public rulemaking process,” said Amanda Russo, director of communications for the Crypto Innovation Council. said in a statement. Decryption. “This is essential to maintaining a competitive and innovative financial position.”
But the impact of the vote was blunted by a statement from the Biden administration hours earlier.
“The Administration strongly opposes the passage of H.J. Res. 109, which would disrupt the SEC's efforts to protect investors in the crypto asset markets and protect the broader financial system,” it read. “Limiting the SEC’s ability to maintain a comprehensive and effective financial regulatory framework for cryptoassets would result in significant financial instability and market uncertainty.”
The statement concluded that if the resolution reaches President Joe Biden's desk, he will veto it.
The focus of the dispute is the normally uncontroversial Staff Accounts Bulletin (SAB), published in April 2022. “The obligations associated with these arrangements involve unique risks and uncertainties that do not exist in arrangements to protect non-crypto assets, including technical and legal assets,” regulatory risks and Uncertainty,” the bulletin reads.
“Traditionally, employee accounting bulletins are not designed to enact sweeping policy changes, but rather to clarify existing regulations,” Russo said. “However, SAB 121 acts as a new regulation and impacts core aspects of the financial and digital asset industry.”
Rep. Mike Flood (R-Nebraska) introduced a resolution condemning SAB 121 in the House, and a companion resolution was introduced in the Senate.
“It is unfortunate that the SEC would seek to circumvent the rulemaking process while falsely claiming that SAB 121 is merely non-binding staff-level guidance,” Commissioner Flood said Monday.
Representative Tom Emmer, a longtime critic of the SEC, today expressed strong support for the House resolution.
“This resolution is an essential effort to protect consumers and foster innovation in the digital asset market,” he said. “It is also important to prevent a regulatory power grab by the SEC.”
“SAB 121 introduces further unnecessary and avoidable concentration risks into the digital asset ecosystem, making markets less fair, orderly, and efficient,” Emmer said earlier this week, adding that SEC Chairman Gary・Gensler added on Twitter. Violating the legal mission of the agency.
