President Joe Biden vetoed HJRes. 109, a proposed congressional decision that might have overturned the Securities and Change Fee's present strategy to banking and cryptocurrencies.

Particularly, the decision targets the SEC's Employees Accounting Bulletin 121, which lays out guidelines on how banks ought to deal with their prospects' crypto property, successfully forcing banks to deal with these property as liabilities.

“SAB 121 displays the SEC workers's cautious technical view relating to sure firms' accounting obligations to guard crypto property,” Biden mentioned in an announcement. “By invoking the Congressional Evaluate Act, this Republican-led decision will improperly restrict the SEC's capacity to develop acceptable steering and deal with future points.”

Biden additionally mentioned his administration “is not going to assist measures that put the well-being of shoppers and traders in danger.”

HJRes. 109 handed with principally Republican assist, however 21 Democrats sponsored the decision within the Home of Representatives, and Senate Majority Chief Chuck Schumer was one of many Democrats who sponsored the decision within the Senate.

The president had beforehand indicated his intention to veto the decision, however Rep. Mike Flood (the Republican who launched HJRes. 109 within the Home of Representatives) argued that “it’s clear that there’s overwhelming opposition to SAB 121, and I urge President Joe Biden to rethink his earlier intention to veto this decision.”

Teams against SAB 121 embody the American Bankers Affiliation and different monetary trade lobbying teams, in addition to cryptocurrency trade advocacy group Stand With Crypto.

“SAB 121 successfully prohibits regulated banking organizations from providing large-scale digital asset custody providers as a result of it treats property as if they’re owned by the banking group relatively than merely in its custody,” the ABA and different trade teams mentioned in an open letter to President Biden.

The White Home announcement paves the best way for additional negotiations over cryptocurrency regulation.

“My administration is raring to work with Congress, constructing on present authorities, to make sure a complete and balanced regulatory framework for digital property that can foster accountable improvement and funds innovation, and assist strengthen U.S. management within the international monetary system,” Biden mentioned.