Joe Biden reverses decision vetoes cryptocurrency bill following Trumps impeachment
In a surprising turn of events, Joe Biden shocked the cryptocurrency market by vetoing a crypto-related bill after previously indicating he would not use the same power. This decision comes amidst the backdrop of Donald Trump’s conviction in a historic election where cryptocurrencies could have a significant impact.
On May 31, towards the end of the day and the week, Joe Biden vetoed a congressional resolution disapproving of the U.S. Securities and Exchange Commission’s (SEC) accounting bulletin on crypto assets, known as the SAB 121.
The veto was justified by Biden as a necessary measure to prevent the restriction of the SEC’s ability to establish proper regulations and address future challenges. This move was unexpected given Biden’s earlier stance on crypto-related legislation.
Previously, Biden had vowed not to veto another crypto bill, as Donald Trump gained popularity for his support of the FIT21 Act, which was approved on May 22. However, Trump’s conviction on multiple counts of falsifying business records created an opening for Biden to step in favor of the SEC.
Despite Trump’s growing support among cryptocurrency enthusiasts due to his favorable stance on crypto in a challenging regulatory environment, Biden’s decision to veto the congressional resolution has clarified his position on cryptocurrencies. This development may have implications for the upcoming elections, as noted by prominent investors who criticized Biden’s move.
The veto was met with opposition not just from the cryptocurrency community but also from Wall Street lobbying groups, who had urged Biden to reconsider. These groups highlighted the negative impact of the veto on regulated banking organizations offering digital asset custody at scale.
However, some cryptocurrency developers saw a silver lining in the veto, suggesting that it could have positive effects on the self-custody industry in the long run. Despite initial concerns, they believe that this decision could ultimately prevent banks from gaining more control over Bitcoin custody.
As the United States awaits further developments in the coming weeks, the crypto investors are speculating about the country’s future stance on innovation. The outcome of these developments may shape the landscape of the 2024 presidential elections, with investors closely monitoring the situation and adjusting their strategies accordingly.