Deadline Looms for Biden to Veto Congressional Overturn of SEC's Crypto Rules
This means Biden has until June 3 to veto Congress' decision. The Chamber noted that Biden has three options. He can veto the decision, sign it to nullify SAB 121, or do nothing by the deadline
Biden Faces Veto Deadline
The resolution to overturn the U.S. Securities and Exchange Commission's controversial Staff Accounting Bulletin 121 (SAB 121), recently passed by the House of Representatives and the Senate, now awaits President Joe Biden's decision on whether to veto it. Before the House voted to overturn SAB 121, the White House issued a notice threatening a veto if the resolution reached Biden.
Despite this, the House passed the resolution, followed by the Senate. "Repeal of the U.S. Securities and Exchange Commission's Staff Accounting Bulletin (SAB) 121 is now on President Biden's desk," the Chamber of Digital Commerce described. Cody Carbone, the Chamber's Chief Policy Officer, explained on social media platform X on Thursday that Congress has sent the resolution to Biden, and the 10-day window ends on June 3.
This means Biden has until June 3 to veto Congress' decision. The Chamber noted that Biden has three options. He can veto the decision, sign it to nullify SAB 121, or do nothing by the deadline. "A veto would effectively end the congressional effort to nullify SAB 121, as Congress likely does not have the votes to override the veto, which requires a two-thirds majority in each chamber," the Chamber detailed, adding that alternatively: President Biden can sign the Joint Resolution into law, nullifying the SEC's SAB 121 and preventing the SEC from issuing a similar rule in the future. However, the president could also choose to do nothing and let the 10 days lapse without signing or vetoing the Joint Resolution.
The Chamber noted: "If Congress is in session, the President's inaction will mean that the bill is effectively signed into law, nullifying SAB 121. If Congress is not in session, the bill could face a pocket veto, where the President's inaction prevents the bill from becoming law." After passing a resolution to overturn SAB 121, the House also passed H.R. 4763, the Financial Innovation and Technology for the 21st Century (FIT21) Act, a bill to establish a regulatory framework for crypto assets.
Before the House vote on FIT21, the White House issued a statement with a softer tone than a veto threat. The Biden administration expressed a willingness to work with Congress to develop a balanced framework for digital assets.
