President Biden’s Veto Shields SEC’s SAB121 Rule from Overturn

• President Biden has vetoed a bill that overturned the SEC SAB121 rule. 
• Biden’s decision sparked strong reactions from the crypto community. 
• However, not all hope is lost for Congress’ resolution. 

In May, the US Congress passed a groundbreaking resolution to overturn the SEC’s SAB121 accounting standard, which sought to change how firms handled crypto customers. 

However, before the House and Senate could celebrate, US President Joe Biden vowed to stay the course with his anti-crypto stance, pledging to veto the legislation. On Friday, the President followed up on his promise, justifying that his intervention was necessary. 

President Biden Shuts Down Congress’ Pro-Crypto 

“My Administration will not support measures that jeopardize the well-being of consumers and investors,” declared President Biden in a letter addressed to the US House of Representatives posted on the White House website after he vetoed what he described as a ‘Republican-led resolution.’

Biden’s contentious decision sparked a firestorm within the crypto community , with many decrying the White House’s perceived ‘abuse of power.’

Many crypto enthusiasts noted that President Biden’s letter shielding SAB121 coincided with the US Federal Court’s conviction of Donald Trump , adding a layer of complexity to the situation, especially since the former President has recently emerged as ‘the pro-crypto’ candidate after he expressed full support for fostering the industry and ending Biden’s anti-crypto crusade. 

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While it is uncertain if Trump’s rising popularity pressured Biden’s hand to protect SAB121, not all hope is certainly lost for the Congress’ resolution. 

Overturning President Biden’s Veto

The U.S. House of Representatives still has a shot at overturning President Biden’s veto, but it will require a two-thirds majority from both chambers of Congress.

In May, both the full House and Senate voted to repeal the SEC’s SAB 121 bulletin. The House passed the resolution with a vote of 228 to 182 , led by Republicans with only 21 Democrats in support. A week later, the Senate voted 60 to 38, with notable support from several Democrats, including Senate Majority Leader Chuck Schumer.

The House needs 290 votes to override the veto, and the Senate needs 66 votes. The House comprises 217 Republicans and 213 Democrats, while the Senate has 49 Republicans and 47 Democrats.

Given their newfound enthusiasm for crypto, if all Republicans vote to overturn the veto, they would still need to sway 99 Democrats to succeed.

Given the strong bipartisan support seen with FIT21 and the rising importance of crypto policies as a key electoral issue for American voters, the prospects of overturning the veto appear optimistic.

On the Flipside

• Mark Cuban and Charles Hoskinson , among other influential figures in the crypto industry, assert that President Biden’s anti-crypto stance could cost him the White House. 
• According to a Grayscale-funded survey, US voters were split on which party was more pro-crypto, considering that an equal percentage of voters (30% each) thought the Democratic and Republican parties had the most favorable position on crypto policies.

Why This Matters

President Biden’s intervention creates a complex scenario for the crypto industry. It puts his anti-crypto stance in a revealing light, especially when crypto policies are emerging as a key issue for US voters in the face of rising inflation.