Biden Follows Through with a Veto on Overturning SAB 121 Crypto Custody Bill

“My Administration will not support measures that jeopardize the well-being of consumers and investors. Appropriate guardrails that protect consumers and investors are necessary to harness the potential benefits and opportunities of crypto-asset innovation,” reads Biden's letter to the U.S. House. 

Biden Follows Through with a Veto on Overturning SAB 121 Crypto Custody Bill
Source: Rawpixel.
  • As promised, President Joe Biden vetoed legislation that aimed to overturn the Securities and Exchange Commission's bulletin SAB 121. This bulletin requires financial firms providing crypto custody services to record customer holdings as liabilities on their balance sheets.
"My Administration is eager to work with the Congress to ensure a comprehensive and balanced regulatory framework for digital assets, building on existing authorities, which will promote the responsible development of digital assets and payment innovation and help reinforce United States leadership in the global financial system," was stated in the letter.
  • The veto occurred just hours after banking groups and members of Congress sent letters to President Biden, urging him to sign the resolution to overturn SAB 121. The letters claimed that the guidance prevents regulated banking groups from offering custody services, reports CoinDesk.
  • Previously, the resolution had passed both the U.S. House and Senate with significant majorities, marking the first Bitcoin and crypto bill to gain bipartisan support in Congress.
  • The veto also follows reports that President Biden’s re-election campaign is starting to reach out to crypto industry players for guidance on crypto policy, per The Block.
  • Bitcoin and other cryptocurrencies are becoming significant talking points in the 2024 U.S. Presidential Election, as a number of candidates, including self-proclaimed USD 'maximalist' Donald Trump, have expressed a willingness to make the United States a leader in the industry in order to appeal to more voters.

Full Letter / Archive
The Block Article / Archive
CoinDesk Article / Archive
Axios Article / Archive