The executive branch of US President Joe Biden is announced Government’s position on the proposed bill, HJ Res. 109, would allow highly regulated financial companies to act as custodians of Bitcoin and other virtual currencies.
JUST IN: 🇺🇸US President Joe Biden’s administration says Biden will veto a bill that would allow highly regulated financial companies to hold custody #bitcoin And cryptocurrencies. pic.twitter.com/aXx8aq1m0Z
— Bitcoin Magazine (@BitcoinMagazine) May 8, 2024
“The Government strongly opposes the passage of HJ Resolution 109, which would disrupt the work of the Securities and Exchange Commission (SEC), which protects investors in the crypto asset markets and protects the broader financial system,” the President said. the executive office said. “If the President is presented with HJ Resolution 109, he will veto it.”
H.J.Res. 109 would overturn the SEC’s Staff Accounting Bulletin (SAB) No. 121, which imposes restrictions on financial institutions regarding custody of digital assets under the Congressional Review Act (CRA). By overturning SAB 121, this bipartisan resolution would remove obstacles that prevent highly regulated financial institutions and corporations from acting as custodians of Bitcoin and other digital assets.
Patrick McHenry, Chairman of the U.S. House of Representatives Financial Services Committee, express support In overturning the SEC’s SAB 121, it states: Through SAB 121, the Commission is attempting to dictate how financial institutions and companies protect Americans’ digital assets under the guise of so-called staff guidance. ”
#clock: chairman @Patrick McHenry Published comments supporting HJRes. Disabling SAB 121 109:
"This bipartisan resolution is an essential effort to protect consumers and foster innovation in digital asset markets."
Read more đź”—https://t.co/jnIBJFHIPj
📺Watch👇 pic.twitter.com/fOxOh8DtWH
— Financial Services Republican Party (@FinancialCmte) May 8, 2024
“SAB 121 requires financial institutions and companies that protect the digital assets of their customers to keep those assets on their balance sheets,” McHenry continued. “This means that banks will have to incur significant capital, liquidity and other costs under the current regime.” This essentially makes it prohibitive for financial institutions to store their customers’ digital assets. This is a significant departure from the way in which assets held on behalf of customers are traditionally required to be handled. ”
U.S. Representative French Hill also expressed support for HJ Res. No. 109 states, “Holding reserves against assets in custody is not standard financial services practice. The Biden Administration’s SAB No. 121 is misguided and should be repealed.” ”.
Holding reserves against assets held in custody is not standard financial services practice.
The Biden administration’s SAB 121 is misguided and should be repealed.appreciate @USRepMikeFlood For his great work in leading the CRA resolution to undo the SEC’s failures… pic.twitter.com/jwaTYWxhXs
— French Hill (@RepFrenchHill) May 8, 2024
“We are disappointed that President Biden issued a statement of policy stating that he will veto HJ Resolution 109, the joint resolution that repeals SEC Staff Accounting Bulletin (SAB) 121.” Said Cody Carbone, chief policy officer of the Chamber of Digital Commerce, an American advocacy group promoting D.C.’s Bitcoin industry. “SAB 121 effectively prohibits trusted custodians from managing digital assets.”
Earlier this year, Congressmen Mike Flood and Wiley Nickel Co-author A bipartisan editorial on the SEC’s “flawed SAB 121 guidance” states, “When it comes to custody of digital assets, it’s clear that the most regulated institutions need to be at the table,” adding that expressed concern about the lack of options for storage institutions. Bitcoin ETFs that may lead to concentration risk.
UPDATE: HJ Res 109 officially passed the House by a vote of 228-182 and advances to the Senate.
BREAKING: 🇺🇸 Bill to overturn SEC rules that prevent custody of highly regulated financial companies #bitcoin And cryptocurrencies pass through the house. pic.twitter.com/XRKt84ML0M
— Bitcoin Magazine (@BitcoinMagazine) May 8, 2024
