Saturday, May 25, 2024

This Button Alternative to...

Disclosure: Our...

Did OpenAI steal Scarlett...

Opinions expressed by Entrepreneur contributors are their own....

Help Your Business Excel...

Disclosure: Our...
HomeFinancePresident Joe Biden...

President Joe Biden Will Veto Legislation Allowing Financial Firms to Custody Bitcoin: White House


Executive Office of US President Joe Biden Announce Its position on the proposed legislation, HJ Res. 109, would allow highly regulated financial companies to act as custodians for bitcoin and other cryptocurrencies.

“The Administration strongly opposes passage of HJ Res. 109, which would disrupt the SEC’s work to protect investors in crypto-asset markets and protect the broader financial system,” the Executive Office of the President stated. “If the President is presented with HJ Res. 109, he will veto it.”

HJRes. Act 109 would repeal SEC Staff Accounting Bulletin (SAB) 121, which imposes restrictions on financial institutions regarding the custody of digital assets, under the Congressional Review Act (CRA). By repealing SAB 121, this bipartisan resolution would remove barriers that prevent highly regulated financial institutions and companies from serving as custodians of Bitcoin and digital assets.

US Congressman Patrick McHenry, Chairman of the House Financial Services Committee, He expressed his support To repeal the SEC's SAB 121, stating that “Staff Accounting Bulletin, or SAB, 121 is one of the most blatant examples of regulatory overreach that has defined Gary Gensler's tenure at the SEC. Through SAB 121, the SEC is trying to Dictating how financial institutions and companies protect Americans' digital assets under the guise of so-called employee directives.

McHenry continued: “SAB 121 requires financial institutions and companies that protect their customers’ digital assets to hold these assets on their balance sheets. This means that banks will be required to bear a significant amount of capital, liquidity and other costs under the current system. This makes a prudential regulatory framework prohibitive.” For financial institutions to hold their customers' digital assets, this is a major departure from the traditional way highly regulated banks are required to handle the assets they hold on behalf of their customers.

US Congressman French Hill also spoke in support of HJ Res. 109, saying that “holding reserves against held assets is not standard practice for financial services. The Biden administration's SAB 121 is misleading and should be rescinded.”

“I am disappointed that President Biden issued an Administration policy statement saying he will veto HJ Res 109, the joint resolution to invalidate SEC Staff Accounting Bulletin (SAB) 121.” He said Cody Carbone, chief policy officer at the Chamber of Digital Commerce, a US advocacy group that promotes the Bitcoin industry in DC. “SAB 121 effectively prevents trusted custodians from being able to manage digital assets.”

Earlier this year, Congressmen Mike Flood and Willie Nickel Co-authored A bipartisan opinion piece on the SEC's “flawed SAB 121 guidance” states that “when it comes to custody of digital assets, it is clear that our most regulated institutions should be at the table,” expressing concern about the lack of… Custody options for spot assets Bitcoin ETFs, which may result in concentration risk.

Update: HJ Res 109 was officially approved in the House by a vote of 228-182, and now moves to the Senate.

The post President Joe Biden Will Veto Legislation Allowing Financial Firms to Custody Bitcoin: White House first appeared on Investorempires.com.



Continue reading

European banks in Russia face ‘awful lot of risk’, Yellen says

U.S. Secretary of the Treasury Janet Yellen speaks while presiding over a meeting of the Financial Stability Oversight Council at the Treasury Department on May 10, 2024 in Washington, DC. Kent Nishimura | Getty ImagesU.S. Treasury Secretary Janet Yellen...

BTC Needs to Hold This Support Level Before Challenging the $73.8K ATH (Bitcoin Price Analysis)

The price of Bitcoin is on the verge of achieving a new all-time high after rising beyond the $70,000 line earlier this week, and market participants are wondering how much higher the price of Bitcoin can go. However, there...

Social Media Marketing Agency Pricing Guide for 2024 

How much is charged for social media marketing services in 2024?  With the global social media marketing industry projected to surpass $200 billion by 2024, this question is more relevant than ever. Besides,...