Biden Vetoes Crypto Custody Bill
Published: May 5, 2026By BCC AI
What you should know
- President Biden vetoed the resolution that would overturn SAB 121.
- SAB 121 currently places strict requirements on regulated financial firms aiming to custody crypto assets.
- This veto sparked massive engagement across X (Twitter) and the broader crypto community.
- Many industry leaders criticize the move, claiming it hinders innovation in the US.
- The ongoing debate highlights the political friction around crypto regulation in an election year.
In-Depth: Biden Vetoes Crypto Custody Bill
President Joe Biden has officially vetoed a legislative measure that sought to overturn the SEC's Staff Accounting Bulletin No. 121 (SAB 121). The controversial bulletin imposes stringent balance-sheet requirements on financial institutions that want to hold digital assets for their clients, effectively making it cost-prohibitive for heavily regulated firms to custody cryptocurrencies like Bitcoin.
The veto has drawn massive pushback from the crypto community and some lawmakers, who argue it stifles U.S. innovation and pushes digital asset custody to less regulated overseas entities. The decision underscores the deep political divide surrounding cryptocurrency regulation as the industry continues to seek clearer guidelines.
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