President Biden’s Veto Shields SEC’s SAB121 Rule from Overturn

President Biden vetoes ‘Republican-led’ resolution to protect the SEC’s onerous SAB121 standard.

Biden angry at crypto trading.
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  • President Biden has vetoed a bill that overturned the SEC SAB121 rule. 
  • Biden’s decision sparked strong reactions from the crypto community. 
  • However, not all hope is lost for Congress’ resolution. 

In May, the US Congress passed a groundbreaking resolution to overturn the SEC’s SAB121 accounting standard, which sought to change how firms handled crypto customers. 

However, before the House and Senate could celebrate, US President Joe Biden vowed to stay the course with his anti-crypto stance, pledging to veto the legislation. On Friday, the President followed up on his promise, justifying that his intervention was necessary. 

President Biden Shuts Down Congress’ Pro-Crypto 

“My Administration will not support measures that jeopardize the well-being of consumers and investors,” declared President Biden in a letter addressed to the US House of Representatives posted on the White House website after he vetoed what he described as a ‘Republican-led resolution.’

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 "Appropriate guardrails that protect consumers and investors are necessary to harness the potential benefits and opportunities of crypto-asset innovation." President Biden continued. 

Biden’s contentious decision sparked a firestorm within the crypto community, with many decrying the White House’s perceived ‘abuse of power.’

Many crypto enthusiasts noted that President Biden’s letter shielding SAB121 coincided with the US Federal Court’s conviction of Donald Trump, adding a layer of complexity to the situation. This is especially true since the former President has recently emerged as ‘the pro-crypto’ candidate after he expressed full support for fostering the industry and ending Biden’s anti-crypto crusade. 

While it is uncertain if Trump’s rising popularity pressured Biden’s hand to protect SAB121, not all hope is certainly lost for the Congress’ resolution. 

Overturning President Biden’s Veto

The U.S. House of Representatives still has a shot at overturning President Biden’s veto, but it will require a two-thirds majority from both chambers of Congress.

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In May, both the full House and Senate voted to repeal the SEC’s SAB 121 bulletin. The House passed the resolution with a vote of 228 to 182, led by Republicans and supported by only 21 Democrats. A week later, the Senate voted 60 to 38, with notable support from several Democrats, including Senate Majority Leader Chuck Schumer.

The House needs 290 votes to override the veto, and the Senate needs 66 votes. The House comprises 217 Republicans and 213 Democrats, while the Senate has 49 Republicans and 47 Democrats.

Given their newfound enthusiasm for crypto, if all Republicans vote to overturn the veto, they would still need to sway 99 Democrats to succeed.

With the strong bipartisan support seen with FIT21 and the rising importance of crypto policies as a key electoral issue for American voters, the prospects of overturning the veto appear optimistic.

On the Flipside

  • Mark Cuban and Charles Hoskinson, among other influential figures in the crypto industry, assert that President Biden’s anti-crypto stance could cost him the White House. 
  • According to a Grayscale-funded survey, US voters were split on which party was more pro-crypto, considering that an equal percentage of voters (30% each) thought the Democratic and Republican parties had the most favorable position on crypto policies.

Why This Matters

President Biden’s intervention creates a complex scenario for the crypto industry. It reveals his anti-crypto stance, especially when crypto policies are emerging as a key issue for US voters in the face of rising inflation. 

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

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Insha Zia

Insha Zia is a senior journalist at DailyCoin covering crypto developments, especially in the Cardano ecosystem. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.