LUCKNOW (CoinChapter.com) — President Joe Biden vetoed a bipartisan resolution to overturn the SEC’s crypto custody bill known as SAB 121. The guidelines, which require crypto custodians to record customers’ crypto holdings as liabilities, were widely opposed by the industry. This legislation could alienate crypto-friendly voters ahead of the 2024 election.
The House of Representatives voted 228-182 to repeal the SEC’s crypto custody bill guidelines, sending the resolution to the Senate. The Senate then voted 60-38 in favor of revoking the crypto accounting rules set to take effect on April 11th.
Despite the bipartisan majorities in both chambers of Congress, President Biden vetoed the resolution to overturn SAB 121. In his official response, Biden stated the repeal “risks undercutting the SEC’s broader authorities regarding accounting practices.”
The crypto community seems outraged by Biden’s decision to keep the controversial accounting guidelines in place. The Blockchain Association stated they were “disappointed that the admin chose to overrule bipartisan majorities in both Houses.”
Republican Senator Cynthia Lummis, who led efforts to repeal crypto custody bill SAB 121, accused Biden of going “against the will of the American people” with his veto. Other crypto investors also said Biden’s move plays into the hands of Donald Trump, who seems the crypto-friendly candidate for 2024.
The 2024 presidential race seems extremely tight. Biden’s intervention in the crypto custody bill could prove costly if it turns away crypto-friendly Democratic party voters. Some longtime Democrats have already expressed concerns over the administration’s crypto policies.
Ryan Sean Adams, a crypto investor and entrepreneur, slammed SAB 121 as “an anti-crypto rule put in place by [SEC Chair Gary] Gensler’s SEC to stop banks from holding crypto.”
Billionaire Mike Novogratz, CEO of crypto investment firm Galaxy, said Biden’s decision was “disappointing.” This would also help position Donald Trump as the pro-crypto candidate for the GOP.
Even some former Biden advisors criticized the veto, with Moe Vela stating:
“Right now, they’re kind of letting Trump own this issue…The regulatory environment for crypto right now is in shambles.”
As Biden doubles down on restrictive crypto custody bill policies, a growing contingent of traditionally Democratic voters is defecting to Trump’s camp over his promises of blockchain-friendly reforms.
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Notably, Democrats in both the House and Senate — including Majority Leader Chuck Schumer — broke ranks to vote for the SAB 121 repeal bill that Biden ultimately vetoed. As major parties increasingly accept blockchain to court crypto voters, the veto risks leaving Biden isolated even within his own party on the issue.
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