What happens if Biden vetoes Senate's bid to cancel SEC's crypto rule?
With the US presidential election looming, President Biden may need to weigh whether vetoing the bill is worth the potential political cost.
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Yesterday, the US Senate voted in favor of H.J.Res. 109, a bill aiming to repeal Staff Accounting Bulletin No. 121 (SAB 121) issued by the US Securities and Exchange Commission (SEC). This development is seen as potentially beneficial for the crypto industry’s future growth. However, the bill now faces a veto threat from President Biden.
What happens if President Biden vetoes the bill?
The good thing is that the bill could still become law without the President’s signature.
Should Biden choose not to sign H.J.Res. 109, it will be returned to Congress along with his reasons for disapproval. Congress then has the option to override the veto with a two-thirds majority vote in both the House and the Senate.
If they succeed, the bill becomes law despite the President’s disapproval.
On the other hand, if Congress fails to secure a two-thirds majority, the veto will stand, and the bill will not become law.
In a less common scenario, if the President does not take action within ten days while Congress is in session, the bill automatically becomes law without the President’s signature.
If President Biden wants to veto the bill, he might also want to consider whether it’s worth it, and it all comes down to the US presidential election.
Voter polarization on crypto regulation could potentially influence political polarization, but as of now, crypto does not significantly impact voting behavior. According to a Pew Research report in April last year, the issue doesn’t resonate deeply with most voters, with only 17% of American adults having used crypto.
In short, crypto appears to be unpopular now, but it’s noteworthy that voters often base their decisions heavily on economic conditions, which, however, are not favorable for Biden.
According to The Economist, persistent inflation and economic challenges under Biden’s administration could sway public opinion against him. How Biden has managed foreign policy issues could also impact his re-election prospects. Any perceived failures or unpopular decisions in these areas could lead to a loss of support.
With key topics possibly not working in his favor, Biden may want to steer clear of seeking support from the US crypto community and now is the opportunity as his major rival, Donald Trump, has already taken action.
Trump has recently expressed support for the crypto industry, promising to end hostility toward it if elected. While skeptics might view Trump’s shift as a strategic move to garner support, his previous engagement with non-fungible tokens (NFTs) lends some credibility to his promises.
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