Regulation
U.S. House to Vote to Override Biden’s Veto of SAB 121
Cryptocurrency turnover is set to be huge next week! The U.S. House of Representatives may vote next week to override President Biden’s veto of Staff Accounting Bulletin 121 (SAB 121). SAB 121 is a proposed rule that would require SEC-reporting companies to include their cryptocurrency holdings on their balance sheets as per weekly program released by House Majority Leader Steve Scalise.
What does this mean for the cryptocurrency market and its stakeholders?
A Key Moment in Cryptocurrency Regulation
President Biden’s veto is significant in the ongoing fight over cryptocurrency regulation. Despite bipartisan support in Congress to repeal SAB121, the president has remained steadfast, citing the need for strong consumer and investor protections.
Issued by the SEC in 2022, SAB121 has received heavy criticism from the cryptocurrency industry and banks. They argue that it makes offering digital asset services too expensive. Banks say the guidance prevents them from expanding their digital asset services due to the high costs involved.
Understanding the Veto
The resolution to repeal SAB121 received significant support, including the votes of 11 Democratic senators and a 228-182 majority in the House. Repeal supporters argue that the SEC guidelines limit Americans’ ability to store digital assets in traditional banks.
Possible challenges
In May, the House passed a measure supporting SAB 121 by a vote of 228-182, mostly Republicans and 21 Democrats. The Senate also passed it by a vote of 60-38, including support from Senate Majority Leader Chuck Schumer. However, overturning President Biden’s veto of SAB 121 requires a two-thirds majority in both the House and Senate.
Alexander Grieve of Paradigm thinks It’s possible the House could muster enough votes to overturn the veto, citing past bipartisan support for similar legislation. However, others like Cody Carbone of the Chamber of Digital Commerce say that’s unlikely.
Furthermore, as everyone knows, the House would need about 60 more votes than the 228 it had previously, a major challenge in just one week.
And now?
The next vote, which could take place Tuesday or Wednesday, will be a test of bipartisan support for the Financial Innovation and Technology for the 21st Century Act. This act seeks to clarify regulations for cryptocurrencies and other digital assets.
As the 2024 US election approaches, both President Biden and Republican nominee Donald Trump have increasingly focused on digital asset issues, reflecting a shift toward more favorable stances for the cryptocurrency sector.
Overall, while there is some hope of overturning the veto, the task remains daunting in the current scenario.
What do you think will be the future of cryptocurrencies in these political situations? Tell us.