Biden Supports SEC Amid Congressional Pushback on Crypto Rule

President Biden backs SEC Chair Gensler as a House resolution challenges a controversial crypto custody rule, signaling a potential veto if it passes the Senate.

• The House passed a resolution to overturn the SEC’s Staff Accounting Bulletin 121, aimed at regulating crypto custodies, with a 228-182 vote.
• Biden’s administration has threatened to veto the resolution, emphasizing the need for robust financial regulatory frameworks for crypto assets.
• Critics argue the rule is overly burdensome and lacks proper consultation with financial industry regulators.
• The rule requires crypto custodians to report liabilities for custodied cryptocurrencies, increasing transparency but raising industry concerns.
• If the Senate passes the resolution, it faces a likely veto from President Biden, underscoring ongoing debates over crypto regulation.

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