House Financial Services Cmte Head Declares Biden Policy Weakens Crypto Consumer Protections
CryptoNewsTerminal Staff01 Jun, 2024
House Financial Services Cmte Head Declares Biden Policy Weakens Crypto Consumer Protections
House Financial Services Committee Chairman Patrick McHenry (R-NC) criticized President Joe Biden's veto of a bipartisan resolution disapproving of the Financial Accounting Standards Board's (FASB) guidance on crypto asset custody. The veto, McHenry said, "undermines consumer protection in the digital asset marketplace." The resolution, H.J.Res. 109, sought to overturn FASB's guidance on crypto asset custody (SAB 121), which would have required financial institutions to hold crypto assets in a manner similar to how they hold traditional assets. McHenry argued that the veto "overturns decades of settled custody precedent." McHenry also emphasized the importance of the Financial Innovation and Technology Act (FIT21), which recently passed the House and would classify cryptocurrencies as commodities rather than securities. He stated that FIT21 "is more urgent than ever" to ensure adequate consumer protection and innovation in the digital asset space. The resolution's passage in the Senate is crucial, he believes, to address concerns about the Biden administration's approach.
