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President Biden Vetoes Crypto Custody Bill

 |  June 3, 2024

By: Anthony Ha (TechCrunch)

President Joe Biden has vetoed H.J.Res. 109, a congressional resolution aimed at overturning the Securities and Exchange Commission’s (SEC) current stance on banks and crypto.

The resolution specifically challenged the SEC’s Staff Accounting Bulletin 121 (SAB 121), which guides how banks should handle customers’ crypto assets, requiring them to treat these assets as liabilities. Banking groups have criticized this guidance as making it too costly for them to manage crypto assets, while regulators argue it is crucial for investor protection, especially after the collapse of major crypto companies like FTX.

“SAB 121 reflects considered technical SEC staff views regarding the accounting obligations of certain firms that safeguard crypto-assets,” Biden said in a statement. “By virtue of invoking the Congressional Review Act, this Republican-led resolution would inappropriately constrain the SEC’s ability to set forth appropriate guardrails and address future issues…”