- The U.S. House of Representatives recently passed a resolution challenging the Securities and Exchange Commission’s (SEC) anti-crypto banking policies.
- The resolution, however, faces a potential veto from the White House, which has expressed its opposition to the move.
- The dispute centers around a Staff Accounting Bulletin (SAB) issued by the SEC in April 2022, which some argue enacts sweeping policy changes impacting the financial and digital asset industries.
In a significant development, the U.S. House of Representatives has passed a resolution challenging the SEC’s anti-crypto banking policies. However, the resolution faces a potential veto from the White House, sparking a debate on the regulation of the crypto industry.
House Passes Resolution Against SEC’s Anti-Crypto Policies
The resolution to overturn a 2022 SEC bulletin was passed with bipartisan support, 228-182. The move has been lauded by crypto advocates both within and outside Capitol Hill. Amanda Russo, director of communications of the Crypto Council for Innovation, stated that the resolution ensures significant changes go through the proper public rulemaking process, which is crucial for maintaining a competitive and innovative financial landscape.
White House Opposes the Resolution
Despite the House’s decision, the Biden administration issued a statement expressing strong opposition to the resolution. The administration argues that limiting the SEC’s ability to maintain a comprehensive and effective financial regulatory framework for crypto-assets would introduce substantial financial instability and market uncertainty. If the resolution reaches President Biden’s desk, it is likely to be vetoed.
Dispute Over Staff Accounting Bulletin (SAB)
The controversy revolves around a Staff Accounting Bulletin (SAB) issued by the SEC in April 2022. Critics argue that the bulletin, which discusses the unique risks and uncertainties associated with crypto-assets, acts as a new rule impacting core aspects of the financial and digital asset industries. This goes against the traditional purpose of SABs, which are meant to clarify existing rules rather than enact policy changes.
Lawmakers Express Support and Criticism
Rep. Mike Flood (R-Nebraska) introduced a resolution in the House condemning SAB 121, while a companion resolution was introduced in the Senate. Rep. Tom Emmer, a longtime SEC critic, expressed strong support for the House resolution, arguing that it is essential to protect consumers and foster innovation in digital assets markets. However, the SEC maintains that SAB 121 is simply non-binding staff-level guidance.
Conclusion
The ongoing dispute between the House of Representatives and the SEC over crypto regulation underscores the complex and evolving nature of the crypto industry. As lawmakers and regulators grapple with these challenges, the future of crypto regulation in the U.S. remains uncertain.
