After President Joe Biden surprised everyone by vetoing the resolution aimed at reversing the U.S. Securities and Exchange Commission (SEC)’s Staff Accounting Bulletin 121 (SAB 121), the cryptocurrency industry has been left disappointed. The resolution had been approved by both the Senate and the House of Representatives. Industry stakeholders are now expressing their concerns about the strict guidelines imposed by the bulletin on the custody of digital assets. As a result, lawmakers in both the Senate and the House of Representatives are intensifying their efforts to pass the Financial Innovation and Technology for the 21st Century (FIT21) Act, a significant crypto bill.
Many lawmakers have turned to the social media platform X to express their disappointment with Biden’s veto. Congressman French Hill stated on Friday, “Bipartisan votes in Congress should have sent a strong signal to the Biden administration that their SAB 121 is misguided and should be nullified. Senate action on FIT21 is crucial — I remain committed to passing this landmark legislation into law.”
Despite opposition from SEC Chair Gary Gensler and the White House, the FIT21 Act, which establishes a regulatory framework for crypto assets, was approved by the U.S. House of Representatives on May 22. Congressman Hill introduced the bill in July of last year, with the support of Representatives Glenn “GT” Thompson, Dusty Johnson, Tom Emmer, and Warren Davidson. Congressman Patrick McHenry also co-sponsored the legislation.
Senator Cynthia Lummis commented on Biden’s veto, stating, “I will not stand idly by as this administration attempts to skirt the law, and I will continue to fight to promote financial innovation and key protections for crypto assets that this administration seems hellbent on stifling.” Representative Patrick McHenry added, “The President’s veto weakens protections for consumers in digital asset markets and upends decades of custody rules. By rejecting the bipartisan consensus of Congress, the Administration is doubling down on its failed approach. Senate action on FIT21 is more urgent than ever.”
Majority Whip Tom Emmer, who has criticized the Biden administration for weaponizing the legal system and convicting former U.S. President Donald Trump, also expressed his opinion. He said, “Under Joe Biden, things have only gotten worse.” Emmer highlighted issues such as illegal immigration, struggling families, and global chaos, and criticized the administration for focusing on weaponizing the legal system against their political opponents.
What are your thoughts on U.S. lawmakers’ determination to pass the FIT21 bill after Biden vetoed the resolution to overturn the controversial SEC crypto rules? Let us know in the comments section below.
