Biden to Veto Legislation Enabling Financial Firms to Custody Bitcoin

President Joe Biden will veto H.J. Res. 109, a bill that would overturn SEC guidance limiting financial firms from custodial services for Bitcoin.
Biden to Veto Legislation Enabling Financial Firms to Custody Bitcoin
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Key Takeaways

  • President Joe Biden intends to veto H.J. Res. 109, opposing the move to overturn SEC SAB 121.
  • SAB 121 requires financial firms to hold Bitcoin assets on their balance sheets, creating significant costs.
  • The House has passed H.J. Res. 109, but the legislation now faces a Senate decision.

The White House has announced that President Joe Biden plans to veto H.J. Res. 109, which aims to overturn SEC Staff Accounting Bulletin (SAB) 121.

This bulletin restricts financial institutions from custodial services for Bitcoin and digital assets.

The Executive Office of the President stated if the President were presented with H.J. Res. 109, he would veto it.

Pushback against SAB 121

Congressman Patrick McHenry criticized the SEC’s restrictions, stating:

SAB 121 requires banks to incur significant costs, effectively making it prohibitive to safeguard customers’ digital assets.

Bipartisan support for custodianship

Congressmen Mike Flood and Wiley Nickel emphasized the need for regulated institutions to provide Bitcoin custody services to reduce concentration risks.

Despite opposition from the Biden administration, H.J. Res. 109 passed the House with a 228-182 vote and now awaits a decision in the Senate.

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