Decision to repeal SEC crypto regulation is on Biden’s table – now what?

Many House of Representatives lawmakers praised the passage of two pro-crypto bills this week, but President Joe Biden could still veto one piece of legislation championed by industry advocates.

According to congressional records, on May 23, the House submitted a joint resolution to the US president calling on the Securities and Exchange Commission (SEC) to drop a law that would target financial institutions that do business with crypto companies. The bill, HJRes.109, repeals the SEC's Staff Accounting Bulletin (SAB) No. 121, which required banks to place their customers' cryptocurrencies on their balance sheets.

Before the House and Senate passed the resolution, President Biden said he intended to veto the vote on May 8. He said the law would “improperly limit the SEC's ability to address future issues related to crypto-assets” and limit regulatory guidelines for digital assets.

RELATED: Biden may reconsider veto of SAB 121 vote for political support for crypto

However, in roughly two weeks, the political landscape has changed slightly. It was unclear whether President Biden would be influenced by recent events in Congress to reject the resolution or sign it into law.

On May 8, 21 Democrats in the House sided with Republicans to pass HJRes.109. A similarly bipartisan result followed in the Senate on May 16, when the resolution passed by a vote of 60 to 38.

Before the House voted on the Financial Innovation and Technology for the 21st Century (FIT21) Act, the White House released a statement saying President Biden opposed the bill — but did not publicly threaten to veto the bill. More than 70 Democrats have joined with many Republicans to pass the bill, which will soon go to the Senate.

“HJ 109 and the bipartisan support for the SEC's vision is a clear rebuke to crypto regulation,” Moy Vella, then-Vice President Biden's director of administration, told Cointelegraph. “I strongly encourage the Biden administration to work with the crypto industry to develop regulations and policies that are user-friendly and pro-industry.”

Vela added:

“I cannot predict whether the president will oppose HJ 109, but I strongly encourage him not to.”

Crypto fans will know President Biden's move in ten days, not including Sunday — the maximum time allowed to sign or reject payments. The legislation came to the table on the same day the SEC approved the exchange-traded currency Ether (ETH) for the first time to list and trade on US exchanges.

Magazine: Godzilla vs. Kong: The SEC faces a tough battle with crypto legal firepower