Biden's Veto of Anti-Crypto Resolution Draws Criticism from SEC Commissioner

Biden's Veto of Anti-Crypto Resolution Draws Criticism from SEC Commissioner

The Biden administration's veto of a resolution that would have overturned a key crypto custody accounting rule has been met with criticism from the Securities and Exchange Commission (SEC) Commissioner Mark Uyeda. The resolution aimed to repeal the Accounting Standards Codification (ASC) Topic 805, which outlines accounting procedures for crypto assets held by financial institutions. However, the Biden administration vetoed the resolution, arguing that it could harm investors and the financial system. Commissioner Uyeda, a vocal critic of the ASC 805 rule, expressed his disappointment with the veto. He argued that the rule was "imposed through administrative fiat, rather than through rulemaking under the Administrative Procedure Act." Uyeda believes this approach undermines the system of checks and balances and could lead to unchecked agency action. The SEC Commissioner also emphasized the importance of investor protection. He expressed concern that the ASC 805 rule could make it more difficult for investors to understand the risks involved in crypto investments. He called for a more balanced approach to crypto regulation that protects investors while fostering innovation. The veto of the anti-crypto resolution highlights the ongoing debate over the regulation of crypto assets. Industry stakeholders and policymakers continue to grapple with the best way to address the risks and opportunities associated with this emerging asset class.