The Govt Place of business of US President Joe Biden has introduced its stance on proposed regulation, H.J. Res. 109, that will permit extremely regulated monetary companies to behave as custodians for Bitcoin and alternative cryptocurrencies.
JUST IN: 🇺🇸 US President Joe Biden Management says Biden would veto regulation that will permit extremely regulated monetary companies to custody #Bitcoin and crypto. pic.twitter.com/aXx8aq1m0Z
— Bitcoin Copy (@BitcoinMagazine) May 8, 2024
“The Administration strongly opposes passage of H.J. Res. 109, which would disrupt the Securities and Exchange Commission’s (SEC) work to protect investors in crypto-asset markets and to safeguard the broader financial system,” The Govt Place of business of The President mentioned. “If the President were presented with H.J. Res. 109, he would veto it.”
H.J.Res. 109 would tumble the SEC’s Group of workers Accounting Bulletin (SAB) Negative. 121, which imposes restrictions on monetary establishments in regards to the custody of virtual belongings, beneath the Congressional Assessment Work (CRA). Through overturning SAB 121, this bipartisan answer would take away roadblocks that restrain extremely regulated monetary establishments and companies from appearing as custodians for Bitcoin and virtual belongings.
US Congressman Patrick McHenry, Chairman of the Area Monetary Products and services Committee, expressed aid for overturning the SEC’s SAB 121, pointing out, “Staff Accounting Bulletin, or SAB, 121 is one of the most glaring examples of the regulatory overreach that has defined Gary Gensler’s tenure at the SEC. Through SAB 121, the Commission is trying to dictate how financial institutions and firms safeguard Americans’ digital assets under the guise of so-called staff guidance.”
#WATCH: Chairman @PatrickMcHenry delivers remarks in aid of H.J.Res. 109 to nullify SAB 121:
"This bipartisan resolution is an essential effort to protect consumers and foster innovation in digital asset markets."
Learn extra 🔗https://t.co/jnIBJFHIPj
📺 Attend to 👇 pic.twitter.com/fOxOh8DtWH
— Monetary Products and services GOP (@FinancialCmte) May 8, 2024
“SAB 121 requires financial institutions and firms that are safeguarding their customers’ digital assets to hold those assets on their balance sheet,” McHenry continued. “That means banks would be required to take on significant capital, liquidity, and other costs under the existing prudential regulatory framework. This essentially makes it cost prohibitive for financial institutions to custody their customers’ digital assets. This is a massive deviation from how highly regulated banks are traditionally required to treat the assets they hold on behalf of their customers.”
US Congressman French Hill additionally spoke out in aid for H.J. Res. 109, announcing that “Protecting reserves in opposition to the belongings held in custody is NOT same old monetary services and products observe. The Biden Admin’s SAB 121 is faulty and must be nullified.”
Holding reserves against the assets held in custody is NOT standard financial services practice.
The Biden Admin's SAB 121 is misguided and should be nullified. I thank @USRepMikeFlood for his excellent work in leading a CRA resolution to roll back the SEC's failure in their… pic.twitter.com/jwaTYWxhXs
— French Hill (@RepFrenchHill) May 8, 2024
“Discouraged that President Biden issued a Statement of Administration Policy saying he would veto H.J. Res 109, the Joint Resolution to nullify the SEC’s Staff Accounting Bulletin (SAB) 121,” mentioned Cody Carbone, Prominent Coverage Officer at The Chamber of Virtual Trade, an American advocacy staff that promotes the Bitcoin trade in DC. “SAB 121 effectively prohibits trusted custodians from being able to manage digital assets.”
Previous this day, Congressmen Mike Overspill and Wiley Nickel co-authored a bipartisan op-ed at the SEC’s “flawed SAB 121 guidance,” pointing out that “When it comes to digital asset custody, it’s clear our most regulated institutions need to be at the table,” expressing worry in regards to the rarity of custodian choices for spot Bitcoin ETFs, which might supremacy to focus dangers.
Replace: H.J. Res 109 has formally handed the home in a vote of 228 to 182, and now strikes directly to the Senate.
BREAKING: 🇺🇸 Regulation that will tumble SEC rule combating extremely regulated monetary companies from custodying #Bitcoin and crypto PASSES the home. pic.twitter.com/XRKt84ML0M
— Bitcoin Copy (@BitcoinMagazine) May 8, 2024
