Regulation
House vote on SEC bill SAB 121 postponed after Biden letter
The House of Representatives has delayed a vote to override President Biden’s veto of the SEC’s anti-crypto rule, SAB 121, after allegedly receiving a dramatic letter from President Biden.
House Vote on SEC Bill SAB 121 Postponed
House votes to overturn President’s ruling Biden’s veto The vote on SEC Accounting Bulletin No. 121 (SAB 121) has been postponed. Originally scheduled for Wednesday, July 10, the vote will now take place on Thursday, July 11, at approximately 10:30 a.m.
The vote’s postponement came after President Biden reportedly sent a letter to the House of Representatives, which caused the vote to be postponed. The contents of the letter are still unknown.
Representative Patrick McHenrywho has publicly spoken out against the SEC rule, expressed concern and annoyance at the delay. McHenry said the rule is anti-cryptocurrency because it requires companies that store cryptocurrencies for their customers to record those assets as liabilities on their balance sheets. “We shouldn’t be doing business that way,” he said.
Background to SAB 121
Published in 2022, the SEC’s SAB 121 is a set of strict accounting standards for companies that deal with cryptocurrencies. Opponents of the rule, including some of the most vocal members of the cryptocurrency community, say the rule hinders business development and adds excessive regulation to the market.
The rule requires companies to recognize crypto assets as liabilities, a move that is seen as a barrier to the expansion of cryptocurrency custody services to other traditional financial institutions.
THE Home The Senate had previously approved a motion to repeal SAB 121 with bipartisan support. However, President Biden vetoed the resolution, hence the current push to override his veto.
The delay has implications for the ongoing debate over cryptocurrency regulation in the United States. President Biden’s letter has swayed some lawmakers, raising concerns that they might have enough votes to override the veto.
A two-thirds majority vote is required to override a presidential veto in the House of Representatives, which is quite difficult given the current political situation.
Some sources indicate that many Democrats who promoted repeal may now support Biden, especially as the election approaches.
Political and market reactions
The postponement of the vote has sparked mixed reactions from stakeholders. A recent poll found that Republican voters have a positive perception of cryptocurrency and prefer laws that are clearly defined by their elected officials rather than by regulatory agencies.
In the meantime, the The Biden administrationThe ECB’s stance on maintaining SAB 121 is a clear indication that the cryptocurrency market will remain under close scrutiny. This stance could harm market sentiment as well as investor confidence in the crypto space.
The House will reconvene Thursday to address the critical issue, with all eyes focused on whether the veto can be successfully overridden or whether President Biden’s position will prevail.
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