Regulation
‘Misleading’ Cryptocurrency Regulatory Bill SAB 121 Returns to Capitol Hill: What Next?
- Biden is close to winning the crypto fight by keeping the SEC’s SAB 121 rule intact.
- Trump’s pro-crypto stance boosts his odds on Polymarket, now at 63% versus Biden’s 17%.
Weeks ago, United States President Joe Biden vetoed the repeal of the Personnel Accounting Bulletin 121 (SAB 121), but the debate seems far from over.
The bill is back on Capitol Hill, and this time lawmakers are aiming to secure a veto-proof majority.
For context, SAB 121, issued by the SEC, contains controversial accounting guidelines that are considered unfavorable to cryptocurrencies.
What’s the problem?
On July 9, during a House Financial Services Committee hearing with Treasury Secretary Janet Yellen, a Democratic congresswoman Wiley Nickel (D-NC) has attracted attention to the problem.
He highlighted the concerns surrounding the controversial topic, saying:
“I would like to echo Congressman Flood’s concerns about the risk of concentration in the cryptocurrency custody market due to the SEC’s misguided SAB 121 rule, which makes cryptocurrencies less safe for consumers.”
He further added:
“We have the best banks in the world and they should be able to take care of this custodial banking part.”
The unexpected twist
However, a recent update suggested a significant change just before polling day, July 10.
The Biden administration is reportedly close to scoring a decisive victory in its crackdown on cryptocurrencies by preserving the SEC’s accounting rule, SAB 121, which largely prohibits banks from holding digital assets.
Source: Taylor Barr/X
Expressing an opinion on the matter, a user X, @publiusbtcShe said,
“Don’t listen to Elizabeth Warren. Save your careers and vote yes.”
Echoing similar sentiments was @yugacohlerwhat he said,
“If House Democrats fail to override the President’s veto of SAB121, they will lose the cryptocurrency vote in an already difficult election year.”
Will the Cryptocurrency Community Favor Trump?
This situation highlights the growing discontent in the crypto community with Biden’s stance on digital assets. With back-to-back anti-crypto measures, his chances of winning the next election could be jeopardized.
Conversely, former President Donald Trump is increasingly embracing cryptocurrency, as evidenced by his recent adoption of a draft platform support digital resources innovation.
THE declaration released by Trump’s camp clearly conveyed his sentiment and stated:
“Republicans will end Democrats’ illegal and anti-American crackdown on cryptocurrencies and oppose the creation of a central bank digital currency.”
This development has had a significant impact on the Polymarket prediction market. Just a day ago, Trump was at 62% and Biden was at 21%.
However, with the news of SAB 121, Biden’s odds dropped to 17%, while Trump’s rose to 63%.
Source: Polymarket