Regulation
Joe Biden’s Veto of Cryptocurrency Rule Delays House Vote
The U.S. House of Representatives has postponed the vote on H.J. Res. 109, which seeks to override President Joe Biden’s veto of a key piece of legislation affecting the cryptocurrency industry. Originally scheduled for 10:30 a.m. on Thursday, July 11, the vote was rescheduled due to the House’s need to address an unexpected and urgent debate on a separate topic such as reported by Eleanor Terrett, Fox Reporter and Producer. This last-minute change came after President Biden sent a letter, the details of which were not disclosed but appear to have impacted the House schedule.
HJ Res. 109 faces a veto of Staff Accounting Bulletin 121 (SAB 121), a 2022 SEC rule that requires firms that hold cryptocurrency for customers to list those assets as liabilities on their balance sheets. Congress, meanwhile, sought to override the veto with support from both parties, but did not get enough votes to do so.
This law is intended to clarify the regulations regarding cryptocurrencies and other digital assets.
What happens if the vote fails?
According to Terrett, if the vote If H.J. Res. 109 fails, House leaders will advance a new bill through the normal legislative process to accomplish the same goals as the resolution, bypassing the Congressional Review Act (CRA).
However, the Financial Innovation and Technology for the 21st Century Act, which went into effect in May, aims to better define the regulatory roles of U.S. commodities and securities entities in the cryptocurrency space, further complicating the legislative landscape.
Political implications
With the 2024 US election on the horizon, both President Biden and Republican nominee Donald Trump are increasingly focusing on digital asset issues, signaling a potential shift toward more favorable stances for the cryptocurrency sector.
Overall, the House would need about 60 more votes than the 228 it previously received. The crucial vote, scheduled for tomorrow, will test bipartisan support for the Financial Innovation and Technology for the 21st Century Act.
Terrett provided a link to the live broadcast of the House vote on H.J. Res. 109 for those interested in following the proceedings, which will be available Here.