The Executive Office of US President Joe Biden has announced<\/a> its stance on proposed legislation,\u00a0H.J. Res. 109,\u00a0that would allow highly regulated financial firms to act as custodians for Bitcoin and other cryptocurrencies.\u00a0<\/p>\n JUST IN: \ud83c\uddfa\ud83c\uddf8 US President Joe Biden Administration says Biden would veto legislation that would allow highly regulated financial firms to custody #Bitcoin<\/a> and crypto. pic.twitter.com\/aXx8aq1m0Z<\/a><\/p>\n \u2014 Bitcoin Magazine (@BitcoinMagazine) May 8, 2024<\/a><\/p>\n “The Administration strongly opposes passage of H.J. Res. 109, which would disrupt the Securities and Exchange Commission\u2019s (SEC) work to protect investors in crypto-asset markets and to safeguard the broader financial system,”\u00a0The Executive Office of The President stated.\u00a0“If the President were presented with H.J. Res. 109, he would veto it.”<\/p>\n H.J.Res. 109 would overturn the SEC\u2019s\u00a0Staff Accounting Bulletin (SAB)\u00a0No.\u00a0121,\u00a0which imposes restrictions on financial institutions regarding the custody of digital assets,\u00a0under the Congressional Review Act (CRA). By overturning SAB 121, this bipartisan resolution would remove roadblocks that prevent highly regulated financial institutions and firms from acting as custodians for Bitcoin and digital assets.<\/p>\n US Congressman Patrick McHenry, Chairman of the House Financial Services Committee, expressed support<\/a> for overturning the SEC’s SAB 121, stating, \u201cStaff Accounting Bulletin, or SAB, 121 is one of the most glaring examples of the regulatory overreach that has defined Gary Gensler\u2019s tenure at the SEC.\u00a0Through SAB 121, the Commission is trying to dictate how financial institutions and firms safeguard Americans\u2019 digital assets under the guise of so-called staff guidance.\u201d<\/p>\n #WATCH<\/a>: Chairman @PatrickMcHenry<\/a> delivers remarks in support of H.J.Res. 109 to nullify SAB 121:<\/p>\n “This bipartisan resolution is an essential effort to protect consumers and foster innovation in digital asset markets.”<\/p>\n Read more \ud83d\udd17https:\/\/t.co\/jnIBJFHIPj<\/a><\/p>\n \ud83d\udcfa Watch \ud83d\udc47 pic.twitter.com\/fOxOh8DtWH<\/a><\/p>\n \u2014 Financial Services GOP (@FinancialCmte) May 8, 2024<\/a><\/p>\n \u201cSAB 121 requires financial institutions and firms that are safeguarding their customers\u2019 digital assets to hold those assets on their balance sheet,” McHenry continued.\u00a0\u201cThat means banks would be required to take on significant capital, liquidity, and other costs under the existing prudential regulatory framework.\u00a0This essentially makes it cost prohibitive for financial institutions to custody their customers\u2019 digital assets.\u00a0This is a massive deviation from how highly regulated banks are traditionally required to treat the assets they hold on behalf of their customers.\u201d\u00a0<\/em><\/p>\n US Congressman French Hill also spoke out in support for\u00a0H.J. Res. 109, saying that “Holding reserves against the assets held in custody is NOT standard financial services practice.\u00a0The Biden Admin’s SAB 121 is misguided and should be nullified.”<\/p>\n Holding reserves against the assets held in custody is NOT standard financial services practice. <\/p>\n The Biden Admin’s SAB 121 is misguided and should be nullified. I thank @USRepMikeFlood<\/a> for his excellent work in leading a CRA resolution to roll back the SEC’s failure in their\u2026 pic.twitter.com\/jwaTYWxhXs<\/a><\/p>\n \u2014 French Hill (@RepFrenchHill) May 8, 2024<\/a><\/p>\n “Discouraged that President Biden issued a Statement of Administration Policy saying he would veto H.J. Res 109, the Joint Resolution to nullify the SEC’s Staff Accounting Bulletin (SAB) 121,” said<\/a>\u00a0Cody Carbone,\u00a0Chief Policy Officer at The\u00a0Chamber of Digital Commerce, an American advocacy group that promotes the Bitcoin industry in DC. “SAB 121 effectively prohibits trusted custodians from being able to manage digital assets.”<\/p>\n