President Biden has refused to accept the legislation regarding the storage of cryptocurrency, according to TechCrunch.

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President Joe Biden has rejected H.J.Res. 109, a congressional resolution aimed at overturning the Securities and Exchange Commission’s current approach to banks and crypto assets. The resolution targeted the SEC’s Staff Accounting Bulletin 121, which details how banks should handle customers’ crypto assets by treating them as liabilities. This approach has faced criticism from banking groups for being costly, but regulators argue it is necessary to protect investors, particularly after the collapse of prominent crypto companies like FTX.

In a statement, President Biden defended the SEC’s stance, stating that SAB 121 reflects the technical views of the SEC staff on the accounting obligations of firms handling crypto-assets. He emphasized that the resolution could limit the SEC’s ability to establish appropriate safeguards and address future issues, potentially putting consumers and investors at risk.

H.J.Res. 109 received support primarily from Republicans, with some Democrats also in favor of the resolution. Despite pressure from Representative Mike Flood and industry groups such as the American Bankers Association and Stand With Crypto, President Biden remained firm in his decision to veto the resolution.

The White House’s announcement suggested possible negotiations for future crypto regulation, with Biden expressing a willingness to work with Congress to create a comprehensive regulatory framework for digital assets. This framework aims to promote responsible development and innovation in digital assets while maintaining the United States’ leadership in the global financial system.