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 override SAB 121, but the attempt fell short of the necessary veto. Lawmakers voted 228 to 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 congressional effort to repeal the SEC’s Staff Accounting Bulletin 121 (SAB 121). The bulletin requires publicly traded companies to provide transparency about the management and potential risks of safeguarding customers’ crypto assets. However, it has sparked controversy, with some concerned that it could prevent banks from safeguarding digital assets.
The resolution to overturn SAB 121 was introduced in February. In May, the House voted 228-182 to overturn the ballot, with significant Republican support and 21 Democrats joining the effort.
The Senate followed suit, approving the resolution 60-38, with several Democrats siding with Republicans. Despite this, President Biden vetoed the resolution.
Failing to reach supermajority
To override the veto, a two-thirds majority was needed in both houses of Congress, or 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. It should be noted that Georgia Rep. Drew Ferguson mistakenly voted against the measure when he had 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 view the regulation as overly harsh and restrictive, the failure to override the veto underscores the slow pace of change in addressing industry concerns.
Supporters versus opponents
Supporters of the resolution criticize Biden’s veto as a missed opportunity to reform what they see as overly burdensome regulations. Opponents, on the other hand, argue for maintaining regulatory clarity and investor protections in a changing digital economy.
The standoff reflects the broader struggle to balance innovation and regulation in the growing crypto industry.
Also see: SEC Eases Cryptocurrency Reporting Requirements: How Banks and Brokers Can Benefit
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