Anthony Scaramucci, the former White House Director of Communications, has strongly criticised President Joe Biden’s decision to veto the crypto custody bill.
Scaramucci believes that Biden’s stance on crypto could have unforeseen consequences and may end up costing him more than he realizes. In addition, Scaramucci has accused Senator Elizabeth Warren of playing a role in this development. He is now urging support for John Deaton, a former Marine and cryptocurrency attorney who is running for the Republican Massachusetts Senate seat.
Biden’s vetoed H.J.Res. 109 is a congressional resolution aimed at overturning the current approach of the SEC towards banks and crypto. Banks are required to classify customers’ crypto assets as liabilities under the SEC’s Staff Accounting Bulletin 121. This classification increases their cost of handling crypto. This has faced opposition from banking groups. Regulators are cautious due to the risks associated with holding cryptos, especially after the collapse of companies like FTX.
Biden’s veto has sparked significant anger within the crypto community. Skybridge Capital’s Anthony Scaramucci expressed his disapproval, emphasising the potential unforeseen consequences of Biden’s stance on crypto. Mike Novogratz from Galaxy Digital also criticised Biden’s decision, describing it as disappointing and possibly predictable. Perianne Boring, the founder and CEO of the Chamber of Digital Commerce, spoke about Congress’s power to override a veto. She vowed to defend freedom of speech, digital property rights, and the right to assemble.
Ryan Sean Adams, the founder of Bankless, added that this decision will have an impact on Democrats in the upcoming general election. He noted that Biden vetoed the only pro-crypto bill that had come before him. He also emphasised that the SEC had no reason to reject the ETH ETF, leading to its approval.
Biden and the Democrats’ battle over cryptocurrency is now more intense than ever before.
