Lawmakers Ask Biden to Uphold Bipartisan Bill on Crypto Custody

IconCryptoNewsTerminal Staff30 May, 2024

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Lawmakers Ask Biden to Uphold Bipartisan Bill on Crypto Custody

Cynthia Lummis, a Republican senator from Wyoming, and Patrick McHenry, the top Republican on the House Financial Services Committee, have written to President Biden urging him not to veto a bipartisan bill that would overturn an accounting guidance for banks and other financial institutions on their custody of cryptocurrency assets. The legislation passed the House and Senate with strong bipartisan support. Lummis and McHenry stressed this in their letter to Biden, emphasizing that the bill has broad support from both sides of the aisle. The bill would overturn a guidance issued by the Office of the Comptroller of the Currency (OCC) in 2020. The OCC guidance clarified that banks could hold cryptocurrency assets for their customers. However, the guidance has been criticized by some who argue that it could lead to increased financial risks. The bipartisan bill would overturn the OCC guidance and replace it with a more tailored approach that takes into account the unique risks associated with cryptocurrency assets. The bill would also provide a clear framework for banks and other financial institutions to follow when offering cryptocurrency custody services.

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