The global digital assets industry recently faced a significant event when US President Joe Biden vetoed a congressional resolution linked to the Securities and Exchange Commission's (SEC) guidance known as Staff Accounting Bulletin No. 121 (SAB 121). This move was criticized by the cryptocurrency industry for hindering their collaboration with banks.
Reports suggest that President Biden's veto aimed at implementing regulatory measures to safeguard consumers and investors from risks associated with crypto-assets. The letter accompanying the veto highlighted that SAB 121 reflects the SEC staff's technical perspectives on accounting obligations for firms handling crypto-assets.
By rejecting the Congressional Review Act led by Republicans, Biden expressed concerns that such resolutions could restrict the SEC's ability to establish necessary regulations and address future challenges effectively. He emphasized the importance of implementing appropriate measures to ensure the protection of consumers and investors in the rapidly evolving crypto-asset landscape.
Stuart Alderoty, Chief Legal Officer of Ripple, commented on the potential political ramifications of alienating a significant portion of American voters who own cryptocurrency just months before the election.
Looking ahead, the reaction of the digital assets industry to this decision will be crucial. Following the announcement, the overall crypto market cap experienced a slight decline, currently standing at $2.53 trillion. However, the 24-hour trading volume decreased by more than 10%, settling at $73.76 billion.
Bitcoin's performance in the past week showed a decline as its price remained within the $67K-$68K range. Despite this, Bitcoin has witnessed a year-to-date increase of over 60%, with its current price averaging at $67,638 and a market cap of $1.33 trillion.
In contrast, Ethereum's market outlook remains positive, especially after receiving approval for a spot Exchange-Traded Fund (ETF). Ethereum has seen a YTD surge of over 65%, with its price averaging at $3,783 at the present time.
