Get ready for a major crypto shakeup! The U.S. House of Representatives is poised to vote next week on whether to overturn President Biden’s veto of Staff Accounting Bulletin 121 (SAB 121). This proposed rule mandates that companies reporting to the SEC must list their cryptocurrency holdings on their balance sheets, following a schedule set by House Majority Leader Steve Scalise.
Read on to know more.
What’s at Stake for the Crypto Market?
President Biden’s veto of SAB 121 is a crucial moment in the ongoing debate over cryptocurrency regulation. Despite broad bipartisan backing in Congress to repeal 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 sharp criticism from both the crypto industry and banks. Critics argue that the rule imposes prohibitive costs on offering digital asset services, discouraging banks from expanding into this area.
The resolution to repeal SAB 121 has garnered significant support, including endorsements from 11 Senate Democrats and a decisive 228-182 majority in the House. Advocates for the repeal assert that the SEC’s guidance hampers Americans’ ability to store digital assets in traditional banks.
Hurdles Ahead!
In May, the House passed a measure supporting SAB 121 with a 228-182 vote, driven primarily by Republicans and 21 Democrats. The Senate also endorsed it with a 60-38 vote, featuring backing from Senate Majority Leader Chuck Schumer. However, overturning President Biden’s veto requires a two-thirds majority in both the House and Senate.
Alexander Grieve of Paradigm is optimistic about the House’s ability to secure enough votes to override the veto, citing previous bipartisan support for similar measures. Conversely, Cody Carbone from the Chamber of Digital Commerce is more skeptical, doubting the feasibility of rallying the necessary votes.
A Tight Timeline for a High-Stakes Decision
The House would need to secure approximately 60 more votes than the 228 it previously mustered—a formidable challenge within a single week. The pivotal vote, expected on Tuesday or Wednesday, will test bipartisan support for the Financial Innovation and Technology for the 21st Century Act.
This act seeks to clarify regulations surrounding cryptocurrency and other digital assets.
As the 2024 U.S. election looms, both President Biden and Republican candidate Donald Trump are increasingly focusing on digital asset issues, signaling a potential shift toward more favorable stances for the cryptocurrency industry
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