White House Said It Will Not Veto Crypto Bill in Major Industry Win

The Biden administration said it opposes the bill and is eager to work with Congress in the process to regulate the crypto industry.

By: Pedro Solimano Loading...

depiction of Republicans and Democrats waging a fight over cryptocurrency

The Biden administration announced it would not threaten to veto the crypto market structure bill being voted on today by the U.S. House of Representatives.

In a statement of administrative policy published today, the Biden administration said it still remains “opposed” to the passage of H.R. 4763, Financial Innovation and Technology for the 21st Century Act (FIT21), citing concerns that it lacks sufficient protections for consumers and investors in the digital asset space.

The White House said it is “eager to work with Congress to ensure a comprehensive and balanced regulatory framework for digital assets, building on existing authorities.”

H.R. 4763 would require the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) to issue rules that establish a framework for regulating digital assets.

Today's notice marks a shift from a White House statement published May 8 in which U.S. President Joe Biden threatened to veto the bill, which would also override the SECs ability to oversee the digital asset industry.

The moves from Washington D.C. comes at a time when crypto is becoming increasingly political–and influencing its landscape. Just Tuesday, Republican Presidential nominee Donald Trump said he would begin receiving crypto donations for his campaign and build a Bitcoin and crypto army to defeat Biden.

Last week, 11 Democrats defied Biden and Elizabeth Warren’s anti-crypto army, and passed H.J.Res. 109, which would overturn the SEC's Staff Accounting Bulletin (SAB) No. 121, that prevents regulated financial firms from custodying cyptocurrencies.

Judging by today's statement, it seems Trump's crypto-friendly shift is exerting pressure on Biden’s anti-crypto stance.