Joe Biden will veto the pro-cryptocurrency resolution of Congress

The Office of the President of the United States issued a statement from which we learn that Joe Biden will veto the pro-cryptocurrency resolution of Congress.

Joe Biden is “no”

In a May 8 statement, the White House said it “strongly opposes” members of the House of Representatives trying to pass a resolution that the Biden administration says will disrupt SEC efforts “to protect investors in the cryptocurrency market.” House Bill 109, which appeared in Congress in February, would repeal regulations that discourage banks from serving blockchain clients.

The White House defends the current regulations and says they were created “in response to demonstrated technological, legal and regulatory risks that have already resulted in significant losses for consumers.” Changing them could “inappropriately limit the SEC's ability to provide appropriate safeguards and address future issues related to cryptocurrencies.”

Restricting the SEC's ability to maintain a comprehensive and effective cryptocurrency regulatory framework would result in significant financial instability and market uncertainty

– added.

This is all about how banks account for digital assets. Theoretically, they can store cryptocurrencies and tokens for clients, but they must then show them on their own balance sheet, which increases the cost of providing such a service and makes it almost unprofitable.

Congress wanted change

The issue was analyzed on May 8 in the House of Representatives. Congressman Patrick Henry warned that current rules allow the SEC to “dictate how financial institutions and companies protect Americans' digital assets.”

If you want Americans to be able to use digital assets safely, banks – which are some of the most regulated businesses in our country – are probably the best place (to deposit such funds).

McHenry said.

Maxine Waters, meanwhile, argued that the SEC's current accounting rules mean greater transparency and could help address the “unique risks and uncertainties” associated with cryptocurrencies. She called McHenry's idea “harmful” and “biased.”

This type of transparency helps prevent fraud and mishandling of cryptocurrency assets

– she said and added that these regulations are the result of the collapse of FTX.

However, McHenry's bill has not yet been voted on. The Chairman of the Chamber postponed work on the resolution. Under the U.S. Constitution, the House could override President Biden's potential veto with a two-thirds majority.