President Joe Biden is facing a crucial deadline to make a decision on whether to veto or sign a resolution that seeks to reverse the controversial crypto rules set by the U.S. Securities and Exchange Commission (SEC). Despite the prior veto threat from the White House, the resolution has been passed by both the House of Representatives and the Senate.
The resolution in question aims to overturn the SEC's Staff Accounting Bulletin 121 (SAB 121), and it now awaits President Biden's verdict. Prior to the House's decision to overturn SAB 121, the White House had warned of a potential veto if the resolution made its way to Biden. However, the House went ahead and passed the resolution, followed by the Senate.
The Chamber of Digital Commerce has highlighted that the repeal of SAB 121 is now on President Biden's desk, with a 10-day window that will end on June 3. Cody Carbone, Chief Policy Officer of the Chamber, explained on the social media platform X that Congress has sent the resolution to Biden, and he has until June 3 to veto it.
The Chamber outlined three possible options for President Biden. He can choose to veto the decision, sign it to nullify SAB 121, or take no action before the deadline. The Chamber emphasized that a veto would effectively put an end to Congress' attempts to nullify SAB 121, as the required two-thirds majority in each chamber to override the veto is unlikely. Alternatively, President Biden can sign the Joint Resolution into law, thereby nullifying SAB 121 and preventing the SEC from implementing a similar rule in the future.
However, President Biden also has the option of doing nothing, allowing the 10-day period to pass without signing or vetoing the Joint Resolution. In this case, if Congress is in session, the bill would effectively become law, nullifying SAB 121. If Congress is not in session, the bill could face a pocket veto, where the President's inaction prevents it from becoming law.
In addition to the resolution to overturn SAB 121, the House has also passed the Financial Innovation and Technology for the 21st Century (FIT21) Act, which establishes a regulatory framework for crypto assets. Before the House vote on FIT21, the White House issued a statement with a more conciliatory tone, expressing a willingness to collaborate with Congress in developing a balanced framework for digital assets.
What are your thoughts on whether President Joe Biden will follow through on his veto threat and overturn SAB 121? Share your opinions in the comments section below.