Representative Patrick McHenry, Chairman of the House Financial Services Committee, has made a robust case for overturning President Biden’s veto of a decision that aimed to dam the Securities and Exchange Commission’s Staff Accounting Bulletin No. 121 (SAB 121).
Rep McHenry Calls for Overturn of Biden Veto
During a latest session on the House, Representative Patrick McHenry engaged fellow Republicans in a debate once they have been debating the President’s veto of H. J. Res. 109. This decision goals at disapproving the SEC’s rule on Staff Accounting Bulletin No. 121 regarding banks’ digital asset custody.
The debate underscored the bipartisan nature of the disapproval that beforehand garnered extensive assist in each the House and Senate. McHenry pressured that the decision was very important in revising the US coverage on digital belongings and inspired his colleagues to vote in favor of the movement to override the veto.
#WATCH: Chairman @PatrickMcHenry in assist of @HouseGOP’s message to override the veto of the bipartisan H.J.Res. 109:
“This Administration would rather play politics and side with power hungry bureaucrats over the American people.”
Read extra 🔗https://t.co/l10uFxrc1r
📺 👇 pic.twitter.com/oe50k3aCdt
— Financial Services GOP (@FinancialCmte) July 10, 2024
In his speech, McHenry took a swipe at present administration for supporting bureaucratic choices that, in his opinion, work towards the folks’s greatest curiosity. He talked about the overall assist of the unique Congressional Review Act (CRA) decision and the next passage of the Financial Innovation and Technology (FIT) for the twenty first Century Act that endorsed the repeal of SAB 121.
Bipartisan Support and Legislative Context
The legislative journey of the decision, H.J. Res. 109, displays vital bipartisan cooperation. . At first, each homes of Congress permitted the decision with a big margin, a development that can be noticed within the latest passage of the FIT21 Act.
Moreover, this Act which contained provisions in regards to the digital asset market constructions was additionally handed with the assist of many members of the 2 events together with 71 from the President’s personal get together.
Therefore, this bipartisan place on SAB 121 suggests that there’s a coordinated push by legislators to change the SEC’s stance on the regulation of digital belongings. McHenry and different critics of SAB 121 have famous that the rule unduly burdens banks, restricts shopper decisions for asset custody, and alters long-standing business norms with out clear rationale.
Mike Flood Criticizes SEC Overreach
In addition, throughout the debate, Representative Mike Flood additionally expressed a unfavorable view in direction of the implementation of SAB 121 by the SEC. He famous that the SEC’s actions underneath Gensler are past its scope in that different our bodies just like the Federal Reserve and the Treasury Department ought to deal with such roles.
Flood mentioned,
“The SEC was caught with its hand in the cookie jar. They have gone too far in a very obvious manner that is against the best interest of investors. SAB 121 is not a political issue; it is simply a bad rule.”
Flood argued that SAB 121 weakens the standard financial institution custody frameworks by way of the adoption of measures which can be inapplicable to the banking sector’s operations.
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