Biden’s Decision on SEC’s Crypto Rules Nears as Veto Deadline Approaches

President Joe Biden is approaching a crucial deadline to decide on a resolution that could overturn the U.S. Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121 (SAB 121).

The resolution, which has already been approved by both the House of Representatives and the Senate, is threatened with a veto by the White House.

President Biden has until June 3 to act on the Congressional decision, which challenges the SEC’s controversial crypto regulations intended to govern the handling of digital assets by brokers.

Update on #SAB 121 process. We received confirmation that Congress did not send over H.J Res 109, Resolution to repeal SAB 121, to Biden until last night.

That changes 10 day window. @POTUS now has until June 3rd to veto the Resolution (10 day window excluding Sundays). https://t.co/b9RHs8hS7a

— Cody Carbone (@CodyCarboneDC) May 23, 2024

Potential Outcomes of Presidential Action

The Chamber of Digital Commerce outlines three potential actions President Biden could take: veto the resolution, sign it into law, or do nothing and let the resolution become law by default if Congress is in session.

A presidential veto would likely be the final step in the effort to overturn SAB 121, as Congress probably lacks the two-thirds majority required to override a veto.

If signed or left unsigned with Congress in session, the resolution would nullify SAB 121, preventing the SEC from implementing a similar rule in the future.

Implications for Bitcoin and Crypto Regulation

This decision is pivotal for the cryptocurrency market, including Bitcoin, as it will influence how digital assets are regulated in the United States. The outcome could impact investor confidence and market stability, as clear regulatory frameworks are often seen as essential for the mainstream adoption of cryptocurrencies.

Additionally, the House has moved forward with the Financial Innovation and Technology for the 21st Century (FIT21) Act, which aims to establish a more comprehensive regulatory framework for digital assets.

The Biden administration has shown a willingness to collaborate with Congress on this issue, suggesting a possible softening of its stance towards crypto regulation.

Bitcoin Price Prediction

Bitcoin is currently trading at $68,400, marking a modest drop of 0.50%, signalling a bearish Bitcoin price prediction. The digital currency sits just above its pivotal point at $68,500, which is critical in determining its short-term movement.

Bitcoin’s immediate resistance levels are $69,600, followed by $70,650 and $71,950. These markers represent key hurdles that Bitcoin needs to overcome to sustain an upward trajectory.

On the downside, immediate support lies at $67,265, with further cushions at $66,380 and $65,144. These levels are vital for holding Bitcoin’s price in case of a downturn.

Technical indicators suggest a nuanced picture. The Relative Strength Index (RSI) is at 47, indicating a neutral market sentiment that leans neither towards overbought nor oversold conditions.

Meanwhile, the 50-day Exponential Moving Average (EMA) stands at $68,737, slightly above the current price, hinting at potential resistance.

Conclusion:

• Bitcoin’s current stance is delicately balanced at $68,502, with pivotal support and resistance levels nearby.
• Bearish potential below $68,500 with substantial support levels to watch; bullish above this mark could target higher resistance.
• Neutral RSI and close 50 EMA suggest cautious trading, with potential for shifts in market direction based on upcoming price actions.

The technical landscape for Bitcoin shows a currency at a crossroads, with potential shifts heavily reliant on its ability to maintain or breach the $68,500 level.