Biden declines legislation attempting to weaken SEC’s authority regarding cryptocurrency.

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President Biden rejects legislation that would affect accounting regulations for cryptocurrency.

President Joe Biden from the United States has rejected a bill that was intended to reverse a Securities and Exchange Commission (SEC) memo that establishes financial regulations for companies that hold cryptocurrency. In a formal letter on May 31, Biden explained that overturning the SEC’s decision could weaken the agency’s overall power to regulate accounting methods.

The proposed legislation aimed to revoke the SEC’s rules for accounting cryptocurrency, which currently mandate that institutions report their crypto assets as debts on financial statements. President Biden stressed, “My Administration will not back any actions that put consumers and investors at risk.”

Last month, the House and Senate approved the repeal of the SEC’s staff accounting bulletin, also known as SAB 121. This directive requires financial institutions to report cryptocurrencies on their balance sheets, which has been criticized for making it difficult for financial institutions to work with crypto companies.

The reaction of the industry to the veto decision.

The cryptocurrency industry quickly voiced their criticism of Biden’s choice. In a statement, the Blockchain Association expressed their disappointment, while Cody Carbone of the Digital Chamber referred to it as “a blow to progress and economic liberties.”

There are concerns expressed in the crypto community about the potential impact of the veto, particularly in light of previous discussions about Biden’s involvement with players in the crypto industry. Moe Vela, who is a senior advisor to Unicoin and a former senior advisor to Biden, stressed the significance of incorporating crypto into financial systems. Sheila Warren, CEO of Crypto Council, also expressed disappointment with the veto.