Regulation
House set to challenge Biden’s veto of SAB 121
Prepare for a major shakeup in the cryptocurrency industry! United States House of Representatives The SEC is set to vote next week on whether to override President Biden’s veto of Staff Accounting Bulletin 121 (SAB 121), a proposed rule that requires companies that report to the SEC to list their cryptocurrency holdings on their balance sheets, according to a timetable set by House Majority Leader Steve Scalise.
Read on to find out more.
What are the challenges for the cryptocurrency market?
President Biden’s veto of SAB 121 is a pivotal moment in the ongoing debate over cryptocurrency regulation. Despite broad bipartisan support in Congress for repealing SAB 121, the president remains steadfast, emphasizing the need for strong consumer and investor protections.
Introduced by the SEC in 2022, SAB 121 has drawn heavy criticism from the cryptocurrency industry and banks. Critics say the rule imposes prohibitive costs for offering digital asset services, discouraging banks from expanding into the space.
The resolution to repeal SAB 121 garnered significant support, including 11 Democratic senators and a decisive 228-182 majority in the House of Representatives. Proponents of the repeal say the SEC’s guidance hinders Americans’ ability to store digital assets in traditional banks.
Obstacles ahead!
In May, the House of Representatives passed a measure supporting SAB 121 by a vote of 228 to 182, led by mostly Republicans and 21 Democrats. The Senate also approved it by a vote of 60 to 38, with the support of Senate Majority Leader Chuck Schumer. However, overriding President Biden’s veto requires a two-thirds majority in both the House and Senate.
Paradigm’s Alexander Grieve said he’s optimistic the House can muster enough votes to override the veto, citing past bipartisan support for similar measures. Cody Carbone of the Chamber of Digital Commerce, on the other hand, is more skeptical, doubting the feasibility of mustering the necessary votes.
A tight timetable for a high-stakes decision
The House will need about 60 more votes than the 228 it previously mustered, a tall order in a single week. The crucial vote, expected Tuesday or Wednesday, will test bipartisan support for the 21st Century Financial Innovation and Technology Act.
This law aims to clarify the regulations surrounding cryptocurrency and other digital assets.
As the 2024 US election approaches, both President Biden and Republican candidate Donald Trump are increasingly focusing on digital asset issues, signaling a potential shift towards more favorable stances for the cryptocurrency sector.