Regulation
US House of Representatives fails to override Biden’s veto of SEC rule
While a strong majority of the U.S. House of Representatives voted against a veto of resolution SAB 121, the votes fell short of the number needed to override it. The attempt was unsuccessful as U.S. lawmakers voted 228-184, which fell short of the majority needed to override President Joe Biden’s veto.
Attempts to delete SAB 121
Earlier this year, Biden vetoed a bipartisan effort in Congress to repeal the Security and Exchange Commission (SEC) policy known as Staff Accounting Bulletin 121 (SAB 121). SAB 121 requires public companies to provide transparency into the handling and potential risks associated with securing customers’ cryptocurrencies. However, it has sparked controversy over the past year over concerns in the cryptocurrency industry that it could prevent banks from safeguarding digital assets.
The resolution to repeal the bill was introduced in February. The full House then voted 228-182 in favor of the measure to repeal the bill in May, with most Republicans signing on, along with 21 Democrats joining Republicans to pass the legislation repealing SAB 121.
The motion passed the Senate with a vote of 60 to 38, as several Democrats sided with the Republicans. The resolution was then vetoed by President Biden.
The two-thirds majority could not be achieved
To overturn the veto, a two-thirds majority from both houses of Congress was needed, which meant 67 out of 100 senators in the Senate and 290 legislators in the House. Specifically, twenty-one Democrats and 207 Republicans voted in favor, while 183 Democrats and one Republican voted against. The only Republican who voted against was Representative Drew Ferguson of Georgia. However, after the vote, Representative Ferguson’s office claimed that he had submitted an incorrect ballot form to Speaker Mike Johnson, when he had intended to vote affirmatively.
“The industry didn’t like the response”
On Wednesday, the ranking Democrat on the House Financial Services Committee, Maxine Waters of California, criticized the repeal of SAB 121 and said the cryptocurrency industry “didn’t like the response it got.”
The ongoing debate over SAB 121 shows how divided US policymakers are on cryptocurrency. While some crypto advocates and lawmakers are attempting to portray the regulation as harsh and restrictive, the outcome indicates how slow changes are coming to alleviate industry concerns.
Supporters of the resolution criticized Biden’s veto as a missed opportunity to reform what they perceived as overly burdensome regulation, while opponents argued the need to maintain regulatory clarity and investor protections in an evolving digital economy.
See also: SEC Simplifies Cryptocurrency Reporting Requirements: How Banks, Brokers Can Benefit