President Biden and SEC Face Backlash from Coinbase and Ripple

[DigitalBits]

President Biden and SEC Face Backlash from Coinbase and ripple



President joe Biden recently vetoed the House Joint Resolution to repeal the Securities and Exchange Commission (SEC) Staff Accounting Bulletin 121 (SAB 121). This bulletin obliges financial institutions that hold cryptocurrencies to allow customers to list these assets on their balance sheets.

Critics argue that this requirement complicates the ability of financial institutions to cooperate with crypto companies. Biden’s statement emphasizes that the veto is necessary for the protection of consumers and investors.


Concerns About President Biden’s Veto of SAB 121


Leading figures in the cryptocurrency industry expressed their dissatisfaction with the President’s decision. Coinbase Chief Policy Officer Faryar Shirzad criticized the veto, saying:

“The Chairman has not been well served by his team. He is using his extraordinary veto power to protect the SEC Chairman’s insidious bureaucratic move to hide behind his staff to destabilize the entire industry.”

Shirzad argued that defending an agency staff member’s views, which have not been formally considered by the Commission, against bipartisan majorities in Congress is a detriment to President Biden and the Office of the President.



Ripple CEO Brad Garlinghouse also commented on the situation in an interview with CNBC. He highlighted the increasing institutional participation in the crypto industry and noted that the election of leaders who support crypto innovation and consumer protection is a positive development. But he expressed concern about the broader implications of the SEC’s guidance for the industry.

Crypto Community Response


The veto also drew harsh reactions from Congress. Sen. Cynthia Lummis and Rep. Patrick McHenry, critical proponents of the resolution, voiced their opposition. McHenry said:

“The president’s veto weakens consumer protections in digital asset markets and overturns decades-old custody rules. The administration is further cementing its failed approach by rejecting the bipartisan consensus of Congress. Senate action on #FIT21 is more urgent than ever.”

Both houses of Congress passed the resolution with bipartisan support; This reflected widespread concern about the SEC’s approach to regulating digital assets. Lawmakers urged the administration to reconsider the veto or work with the SEC to rescind the guidance.


The banking sector also expressed reservations about the guide. In a letter to President Biden, banking organizations stated that the Government Accounting Office’s assessment of SAB 121 prevents regulated banking groups from offering custody services. This sentiment was echoed by lawmakers who emphasized the need for a regulatory framework that supports innovation and consumer protection.

Also read: El Salvador President Nayib Bukele Begins Second Term to Lead Bitcoin Adoption




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Kelvin is a distinguished author specializing in crypto and finance, with a bachelor’s degree in Actuarial Science. Known for her sharp analysis and insightful content, she is fluent in English and specializes in comprehensive research and on-time delivery.





The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.

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