Many House members praised the passage of two pro-cryptocurrency bills this week, though President Joe Biden may still veto a key piece of legislation supported by industry advocates. On May 23, the House of Representatives submitted a joint resolution to the President, calling on the U.S. Securities and Exchange Commission (SEC) to repeal regulations impacting financial institutions that do business with cryptocurrency companies. The bill, H.J.Res.109, aims to overturn the SEC's Staff Accounting Bulletin (SAB) No. 121, which requires banks to keep customers’ cryptocurrencies on their balance sheets and retain capital against customers.
Before the House and Senate passed the resolution, President Biden expressed his intent to veto it on May 8. He argued that the legislation would “unduly limit the SEC’s ability to ensure appropriate guardrails and address future issues related to crypto-assets” and restrict regulatory guidance for digital assets. However, the political landscape has shifted slightly in the following weeks, leaving it unclear whether President Biden will ultimately decide to veto the resolution or sign it into law.
On May 8, 21 House Democrats joined Republicans to pass H.J.Res.109. The resolution saw similar bipartisan support in the Senate, passing 60-38 on May 16. Despite President Biden's previous opposition to the bill, the recent bipartisan backing may influence his decision. Ahead of the House vote on the Financial Innovation and Technology for the 21st Century (FIT21) Act, the White House issued a statement opposing the bill but stopped short of explicitly threatening a veto. Over 70 Democrats joined the majority of Republicans in passing the bill, which will now go to the Senate floor.
Moe Vela, former executive director for then-Vice President Biden, commented on the bipartisan support for H.J.Res.109, describing it as a clear rebuke of the SEC’s vision for cryptocurrency regulation. He urged the Biden administration to collaborate with the cryptocurrency industry to develop consumer-friendly regulations and policies. Vela stated, “I cannot predict whether the president will veto H.J.Res.109, but I strongly encourage him not to do so.”
Cryptocurrency supporters will have ten days to learn President Biden’s decision, not including Sunday — the maximum time allowed for a bill to be signed or vetoed. The legislation reached his desk the same day the SEC approved the listing and trading of spot ether exchange-traded funds (ETFs) on U.S. exchanges for the first time.
