In a surprising move, President Joe Biden has vetoed the resolution aimed at reversing the U.S. Securities and Exchange Commission (SEC)'s contentious crypto regulations in SAB 121. This decision has left the cryptocurrency industry disheartened, as it had hoped for a different outcome. The SEC's Staff Accounting Bulletin 121 (SAB 121) has faced criticism for imposing overly strict guidelines on the custody of digital assets. As a result, lawmakers in both the Senate and the House of Representatives are now pushing for the passage of the Financial Innovation and Technology for the 21st Century (FIT21) Act, a groundbreaking crypto bill.
Many legislators have taken to the social media platform X to express their concerns about Biden's veto. Congressman French Hill, for instance, voiced his disappointment and emphasized the importance of Senate action on FIT21. He stated that the bipartisan support for overturning SAB 121 should have sent a strong message to the Biden administration. Hill remains committed to enacting the FIT21 Act into law.
Despite opposition from SEC Chair Gary Gensler and the White House, the FIT21 Act was approved by the U.S. House of Representatives on May 22. Congressman Hill, along with Representatives Glenn "GT" Thompson, Dusty Johnson, Tom Emmer, and Warren Davidson, introduced the bill in July last year. Congressman Patrick McHenry also co-sponsored the legislation.
Senator Cynthia Lummis criticized the Biden administration's attempt to bypass the law and pledged to continue fighting for financial innovation and necessary protections for crypto assets, which she believes the administration is trying to suppress.
Representative Patrick McHenry expressed his concern about the President's veto, arguing that it weakens consumer protections in digital asset markets and disrupts established custody rules. He believes that by rejecting the bipartisan consensus of Congress, the administration is reinforcing its failed approach. McHenry stressed that Senate action on FIT21 is now more urgent than ever.
Majority Whip Tom Emmer, who has previously criticized the Biden administration for politically targeting former President Donald Trump, expressed his disappointment with the current state of affairs. Emmer highlighted various issues such as illegal immigration, struggling families, and global chaos, claiming that things have worsened under President Biden's leadership. He accused the administration of prioritizing the weaponization of the legal system against their political adversaries.
What are your thoughts on the determination of U.S. lawmakers to pass the FIT21 Act, despite President Biden's veto of the resolution to overturn the controversial SEC crypto regulations? Let us know in the comments section below.