President Joe Biden has exercised his veto power to reject a bill passed by both the House and Senate, which aimed to remove a controversial policy implemented by the Securities and Exchange Commission (SEC) regarding cryptocurrency.

The legislation sought to overturn the SEC's guidelines that required certain companies to classify crypto assets as liabilities on their balance sheets, regardless of whether they were holding these assets on behalf of clients. Biden argues that eliminating this advice would hinder the SEC's ability to enforce protective measures and safeguard investors. He believes that removing the guideline poses a risk of undermining the SEC's broader powers in relation to accounting practices.

The bill, sponsored by the Republican party, was approved by the House with a vote of 228 to 182, with the support of 21 Democrats. In the Senate, the measure passed with a vote of 60 to 38, with eleven Democrats voting in favor.

Biden's decision to veto the bill comes at a time when Bitcoin and cryptocurrency are receiving increased attention and scrutiny in the realms of politics and regulation. Last week, Former President Trump began accepting crypto contributions, pledging to advocate for the industry and the rights of investors to personally own their assets.

Crypto Enthusiasts Disappointed by Biden's Veto

The veto has disappointed many crypto enthusiasts who were hopeful that the bill would pass, providing a boost to the industry. However, Biden remains firm in his belief that the SEC's guidelines are necessary to protect investors and maintain the integrity of the financial system.

As the debate surrounding cryptocurrency regulation continues, it remains to be seen how the industry will adapt to the changing landscape and whether future legislation will be more favorable to the growth of digital assets.