Regulation
House Prepares for Crucial Vote on Biden’s Veto of Cryptocurrency Rule SAB 121
The U.S. House will vote next week to overthrow the president by Joe Biden veto of Staff Accounting Bulletin 121, also known as SAB 121. The bulletin has sparked controversy in the cryptocurrency industry. It requires cryptocurrency custodians to record customer holdings as liabilities.
House Majority Leader Steve Scalise indicated that the vote could take place Tuesday or Wednesday. After a veto, a vote is a constitutional requirement. The measure previously passed the House by a vote of 228-182.
Bipartisan Push to Overturn SAB 121 Veto
SAB121 requires companies that hold cryptocurrency for customers to list it as a liability. This rule has raised concerns among banks and the cryptocurrency industry. They say it could hinder their ability to safeguard digital assets.
The resolution to override SAB 121 has received bipartisan support. In May, the Senate passed it by a vote of 60-38, including support from Senate Majority Leader Chuck Schumer. However, overriding a veto requires a two-thirds majority in the House and Senate.
Alexander Grieve of venture capital firm Paradigm noted the challenge but saw the potential. “Remember when Biden vetoed SAB121 rollback? It will return to the House floor next week.” He noted previous bipartisan support for the FIT21 cryptocurrency market structure bill.
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Challenges mount to overturn cryptocurrency rule veto
Despite bipartisan support, overturning the veto remains a challenge. The House needs 290 votes, up 60 from the initial 228 votes in favor. Cody Carbone of the
Digital Chamber of Commerce have expressed doubts about reaching this threshold.
Carbone stressed the difficulty of changing the minds of 60 members in a week. He acknowledged the efforts for consumer protection and good governance. However, he believes that the attempt to ignore the veto will ultimately fail.
The cryptocurrency industry remains confident but realistic about the upcoming vote. They recognize the steep climb to overturn the veto. The focus now is on rallying additional support in the House.
The outcome of the vote has significant implications for the cryptocurrency industry. If the veto is overturned, it could alleviate concerns about banks’ ability to safeguard digital assets. Conversely, if it stands, firms may need help complying with SAB 121.
The cryptocurrency industry has been vocal about its concerns. They argue that the rule could stifle innovation and hinder the growth of digital assets. The upcoming vote is crucial in determining the regulatory landscape for cryptocurrencies.
Supporters of overriding the veto emphasize the importance of flexibility for financial institutions. They argue that SAB 121 imposes undue burdens on firms that hold crypto assets. The vote will be a crucial indicator of Congress’s support for the cryptocurrency industry.
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