Regulation
‘Misguided’ SAB 121 Cryptocurrency Regulation Bill Returns to Capitol Hill: What Now?
- Biden moves closer to victory in cryptocurrency crackdown by keeping SEC Rule SAB 121 intact.
- Trump’s pro-crypto stance increases his chances on Polymarket, now at 63% versus 17% for Biden.
A few weeks ago, the United States President Joe Biden vetoed the repeal of Staff Accounting Bulletin 121 (SAB 121), but the debate appears far from over.
The legislation returned to the Capitol, with lawmakers this time seeking a veto-proof supermajority.
To put things into context, SAB 121, issued by the SEC, contains controversial accounting guidance that is considered unfavorable to cryptocurrency.
What is the problem?
On July 9, during a hearing before the House Financial Services Committee with Treasury Secretary Janet Yellen, Democratic Congressman Wiley Nickel (D-NC) has drawn attention at the question.
He highlighted the concerns surrounding the controversial topic, saying:
“I want to echo Congressman Flood’s concerns about the risk of concentration in the cryptocurrency custody market due to the SEC’s misguided SAB 121, which makes cryptocurrencies less safe for consumers.”
He further added:
“We have the best banks in the world and they should be able to take care of this part of the custodian bank.”
The unexpected turn of events
However, a recent update suggests a significant change just before election day, which is July 10.
The Biden administration is reportedly on the verge of scoring a crucial victory in its crackdown on cryptocurrencies by preserving the SEC’s accounting rule, SAB 121, which broadly prohibits banks from holding digital assets.
Source: Taylor Barr/X
Expressing an opinion on the matter, user X, @publiusbtcsaid,
“Don’t listen to Elizabeth Warren. Save your careers and vote yes.”
Echoing similar sentiments, @yugacohlerwho said,
“If House Democrats don’t override the president’s veto on SAB121, they will lose the vote on cryptocurrencies in an already difficult election year.”
Will the crypto community favor Trump?
This situation underscores the growing discontent in the crypto community with Biden’s stance on digital assets. With the subsequent anti-crypto measures, his chances of winning the upcoming elections could be compromised.
In contrast, former President Donald Trump has increasingly embraced cryptocurrency, as evidenced by his recent adoption of a platform project supporting innovation in digital assets.
THE statement The statement released by Trump’s camp made its feelings clear and stated:
“Republicans will end the Democrats’ illegal and anti-American crackdown on cryptocurrencies and oppose the creation of a central bank digital currency.”
This development has had a significant impact on the Polymarket Prediction Market. Just a day ago, Trump was at 62% and Biden was at 21%.
However, with the announcement of SAB 121, Biden’s chances have fallen to 17%, while Trump’s have risen to 63%.
Source: Polymarket