Biden Vetoes Key Bipartisan Legislation

( – In this day and age, getting bipartisan support for a bill in both chambers of Congress is nearly a miracle. When it does happen, one would think President Joe Biden would jump at the chance to show he can work with lawmakers on both sides of the aisle. However, instead, he chose to veto important legislation regarding the future of cryptocurrency and the banking industry.

On March 31, 2022, the Securities and Exchange Commission (SEC) released Staff Accounting Bulletin No. 121 (SAB 121), which outlined rules for financial entities that want to hold crypto assets for their clients. Critics of the rules say they made it more difficult and expensive for traditional institutions, like banks, to compete in the crypto realm and provide valuable services.

Apparently, Congress agreed. A Congressional Review Act measure to rebuke the SEC rules passed in the House on May 8 by a 228 to 182 margin. On May 16, the Senate also passed the resolution with a 60 to 38 vote. Their points were that the SEC rules placed prohibitive restrictions on institutions, so they would not be able to compete with EFT assets holding companies.

On May 31, Biden vetoed the bipartisan resolution. In his accompanying statement, Biden remarked that by rebuking SAB 121, Congress was undercutting the SEC’s authority.

The veto did not come as a surprise. The White House issued a Statement of Administration Policy dated May 8 — before the Senate vote on May 16. The missive says, “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.” It ends with the declaration, “If the President were presented with H.J. Res. 109, he would veto it.” And that’s exactly what he did.

~Here’s to Our Liberty!

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