The SEC passed a regulation requiring banks to treat cryptocurrency accounts as a liability, in order to prevent banks taking excessive risk upon themselves and on their customers.
In response, Congress passed a Congressional Review Act resolution rolling back the regulation, and Biden promptly vetoed the CR.
Given the nature of cryptocurrency, and Sam Bankman-Fried and FTX is the least of this, putting strong protections in place is just basic common sense:
President Joe Biden has vetoed H.J.Res. 109, a congressional resolution that would have overturned the Securities and Exchange Commission’s current approach to banks and crypto.
Specifically, the resolution targeted the SEC’s Staff Accounting Bulletin 121, which presents guidance around how banks can handle customers’ crypto assets — in effect, they must treat those assets as liabilities. Banking groups have criticized this approach as making it prohibitively expensive for them to handle crypto, while regulators argue it’s necessary to protect investors, particularly after the collapse of high-profile crypto companies like FTX.
“SAB 121 reflects considered technical SEC staff views regarding the accounting obligations of certain firms that safeguard crypto-assets,” Biden said in a statement. “By virtue of invoking the Congressional Review Act, this Republican-led resolution would inappropriately constrain the SEC’s ability to set forth appropriate guardrails and address future issues.”
………
H.J.Res. 109 was passed with mostly Republican support — but 21 Democrats supported the resolution in the House, and Majority Leader Chuck Schumer was among the Democrats who supported it in the Senate.
Yeah, f%$# Ch%$# Schumer.
Crypto currency is a confidence game. If you can't ban it, you can at least minimize the damage..
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