HomeCryptoBiden's Veto Upholds Bank Crypto Custody Blocker Despite SAB 121 Cancellation -...

Biden’s Veto Upholds Bank Crypto Custody Blocker Despite SAB 121 Cancellation – Ledger Insights

-


President Biden’s Veto of SAB 121 Resolution: Negative Impact on Banks but Limited Political Consequences

President Biden’s recent veto of the SAB 121 resolution has sparked controversy within the banking and cryptocurrency industries. The resolution, which aimed to overturn the SEC’s staff accounting bulletin preventing banks from offering digital asset custody services, had bipartisan support in Congress and the Senate. However, the President’s veto has effectively upheld the SEC’s rule, much to the disappointment of many in the banking sector.

The SEC’s decision to implement SAB 121 without consulting banking regulators has raised concerns about the impact on banks, which are experienced in providing custody services for client assets. Critics argue that the rule makes it overly expensive for banks to offer custody for cryptocurrencies and tokenized securities, potentially limiting consumer access to these assets.

President Biden defended his veto, stating that overturning SAB 121 would restrict the SEC’s ability to regulate digital asset custody and could undermine consumer protections. However, some lawmakers, such as Senator Cynthia Lummis, have criticized the President’s decision, arguing that the SEC should not use staff accounting bulletins to dictate industry policies.

Despite the political implications of the veto, the issue of SAB 121 may not have significant consequences for the President. With Democrats giving mixed messages on cryptocurrency regulation and the SEC recently classifying Ether as a commodity, the decision to uphold SAB 121 may not have a major impact on public opinion. Ultimately, the debate over digital asset custody services continues to be a contentious issue for both the banking industry and regulators.

LATEST POSTS

SWIAT and adesso Collaborate to Launch SWIAT Access, Revolutionizing Blockchain Integration

SWIAT and adesso Unveil SWIAT Access: Streamlining Entry into the Blockchain Ecosystem for Financial Institutions SWIAT and adesso Unveil SWIAT Access: A New Gateway to...

SEC Comments Cause Delay in Launch of Ethereum ETF

Delay in Launch of United States-Based Spot Ether ETFs by SEC The highly anticipated launch of United States-based spot Ether exchange-traded funds (ETFs) has hit...

Judge Amy Berman Jackson Affirms Ripple XRP Ruling in Binance vs. SEC Lawsuit

Judge Amy Berman Jackson Upholds Landmark Decision on Ripple's XRP: Impact on Ongoing Cases and Legal Insight In a groundbreaking win for the crypto community,...

The Shift from Bitcoin Mining to AI: Exploring the Trend in Companies

The Surprising Beneficiaries of the AI Boom: Bitcoin Miners The intersection of artificial intelligence (AI) and Bitcoin mining has created a new and unexpected partnership...

Most Popular