Regulation
US House of Representatives fails to override Biden’s veto of SEC rule
A decisive majority in the U.S. House of Representatives voted to veto Resolution SAB 121, but the effort was not enough to secure the votes needed to override it. Lawmakers voted 228-184, falling short of the supermajority needed to override President Joe Biden’s veto.
Read on to understand how the battle lines are drawn.
Biden’s controversial veto
Earlier this year, President Biden vetoed a bipartisan effort in Congress to repeal the SEC’s Staff Accounting Bulletin 121 (SAB 121). The bulletin requires public companies to be transparent about the management and potential risks of safeguarding customers’ cryptocurrencies. However, it has sparked controversy, with concerns that it could hinder banks from protecting digital assets.
The resolution to repeal SAB 121 was introduced in February. In May, the House voted 228-182 to repeal the bill, with significant Republican support and 21 Democrats joining the effort.
The Senate followed suit, passing the resolution by a vote of 60-38, with several Democrats siding with Republicans. President Biden, however, vetoed the resolution.
Not reaching the supermajority
Overturning the veto required a two-thirds majority in both chambers of Congress: 67 of 100 senators and 290 lawmakers in the House. In the House, 21 Democrats and 207 Republicans voted in favor, while 183 Democrats and one Republican opposed it. Notably, Rep. Drew Ferguson of Georgia mistakenly voted against the measure, but intended to support it, according to his office.
The ongoing debate over SAB 121 highlights the deep divide among U.S. policymakers over cryptocurrency regulation. While some cryptocurrency advocates and lawmakers see the regulation as overly harsh and restrictive, the failure to override the veto highlights the slow pace of change in addressing industry concerns.
Supporters vs. Opponents
Supporters of the resolution have criticized Biden’s veto as a missed opportunity to reform what they see as overly burdensome regulation. Opponents, by contrast, argue for maintaining regulatory clarity and investor protections in an evolving digital economy.
This push and pull reflects the broader struggle to balance innovation and regulation in the rapidly growing cryptocurrency industry.
See also: SEC Simplifies Cryptocurrency Reporting Requirements: How Banks, Brokers Can Benefit
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