Biden Says NO to Bitcoin! No Room for Crypto in Banks!

The regulatory saga surrounding crypto takes an unexpected new turn. According to a recent statement, U.S. President Joe Biden is considering vetoing legislation aimed at easing regulations governing the holding of Bitcoin and other cryptocurrencies by financial institutions.

Biden’s Veto, a Setback for Bitcoin

This turn of events comes as a cold shower for the crypto sector. Indeed, many stakeholders were placing their hopes in this future law to promote greater adoption of Bitcoin within the traditional financial system.

Yet, the White House seems to hold its ground. According to the statement, President Biden is firmly opposed to the bill if presented to him as is. A potential veto that could significantly complicate efforts to integrate Bitcoin and other cryptocurrencies into established financial practices.

For the Biden administration, this possible rejection aims to preserve the effectiveness of the SEC in its mission to protect investors and market stability. A significant argument, but one that risks fueling tensions with entrepreneurs and crypto investors frustrated by this unstable regulatory climate.

Persistent Concerns Surrounding the Crypto Regulatory Framework

Beyond Joe Biden’s potential veto, the entire regulatory framework surrounding crypto continues to raise significant concerns. Many voices regularly speak out to denounce a lack of clarity and consistency on the part of the authorities.

On one hand, the SEC and other regulators advocate a strict approach to overseeing sector players. But at the same time, some lawmakers are trying to relax regulations to foster innovation. A real arm-wrestling match that continues to perpetuate an atmosphere of harmful uncertainty.

Worse still, these regulatory vacillations rekindle fears of a crypto regulation by knee-jerk reaction in the United States. A prospect that could greatly hinder the adoption of Bitcoin and its peers by a wide swath of institutional investors.   

The path towards a calm crypto regulation remains fraught with obstacles in the United States. The veto contemplated by Biden is just the latest twist in a saga that drags on. However, all stakeholders agree on the need to establish a clear and lasting framework for crypto-assets. A significant challenge that will require considerable efforts of reconciliation among the various stakeholders, especially those in favor of Bitcoin.