House Votes To Nullify SEC's Anti-Crypto Policy, Biden Vows To Veto

Authorized by Tom Mitchelhill via CoinTelegraoph.com,

The United States home of Representatives has voted to pass a bill that overturns controversial Securities and Exchange Commission guidance preceding banks from own crypto.

On May 8, the home voted to pass a bipartisan bill dubbed H.J. Res 109 which overturns the SEC’s peculiar Accounting Bulletin (SAB 121) that requires banks to hold their customers’ crypto claims on their balance sheets – which is not the case for conventional assets specified as securities.

Republican Congressman Mike Flood – the lawmaker who introduced the resolution – said SAB 121 was unfair for banks looking to cute crypto, as custodial assets are “always kept off-balance sheet.”

"Gary Gensler, in his jihad against digital assets, utilized what is expected to be mundane staff accounting guide to fundamentally frost out large publically traded banks from taking custody of digital assets," Said Rep. Flood (R-Neb.) in a Wednesday interview with CoinDesk.

And the SEC didn’t consult with the banking regulators about it, Flood pointed out, arguing that Gensler “doesn’t have any business in the banking world.”

Notably, 21 Democrats voted in favour of the bill – which combined with the unique 207 votes from Republicans – Saw the bill pass 228 votes to 182.

Source: Caitlin Long/X

‘By overturning SAB 121, the bipartisan resolution consumers are protected by removing roadblocks that prevent highly regulated financial institutions and companies from acting as customers of digital assets,’ gates of the home Financial Services Committee (HSFC) in a May 8 statement.

“Staff Accounting Bulletin 121 is 1 of the most glaring examples of the regulators overreach that has defined Gary Gensler’s tenure at the SEC,” Said HSFC president Patrick McHenry.

Introduction by the SEC in March 2022, SAB 121 outlines the regulator’s accounting guides for institutions looking to custody crypto assets. Notable, SAB 121 virtually prevents banks from custodying crypto accounts on behalf of clients.

U.S. lawmakers including SEC Commissioner Hester Peirce has argued SAB 121 jeepizes the prosperity of regulated banks to act as crypto customers and treats crypto holdings differently than another assets.

Despite the bill being passed through the home of Representatives, president Joe Biden stood he will veto the fresh bill.

“SAB 121 was issued in consequence to demonstrated technological, legal, and regulators risks that have caused partial losses to consumers,” Biden said in a Wednesday statement, saying he ‘strongly opposes’ disrupting the SEC’s work on this.

In a May 8 statement, the White home said it “strongly opposes” members of the home of Representatives looking to overturn SAB 121, claiming it would disrupt the SEC’s efforts “to defend investors in crypto-asset markets and to defend the broadcaster financial system.”

‘Limiting the SEC’s ability to keep a comprehensive and effective financial regulators framework for crypto-assets would introduce physical financial stableness and marketplace integrity.’

Source: White House

No lesser mortal than key home politician Rep. Maxine Waters thought Flood’s resolution went besides far.

"This bill takes a sledgehammer to fix an issue that may simply needed a scalel, and it does so due to the fact that my colleges on the another side of the aisle are not only curious in doing the laying of peculiar interest groups, they are besides curious in attacking and underlining the SEC in all possible way," said Rep. Maxine Waters (D-Calif.), the ranking politician on McHenry's committee.

As CoinDesk reports, when an agency regulation is reversed under the Congressional Review Act, it’s not only erased, but anything akin is forever blocked from future implementation.

Waters argued that SAB 121 – apart from the controversial custody component – besides provided guide on crypto disclosures that are essential and would be beaten if legislature overturns the policy, and Biden echoed the performance about policy that would be blocked.