The US House of Representatives recently voted to overturn an SEC rule concerning the accounting of cryptocurrencies held in custody, a move that critics argue complicates the safeguarding of digital assets by financial institutions. The resolution passed with 228 votes in favor, indicating a shift in legislative attitudes towards crypto regulations.

The SEC's rule requires crypto custodians to list digital assets as liabilities, a move that has stirred controversy. Critics, including House Financial Services Committee Chair Patrick McHenry, argue that the rule's "heavy capital and liquidity requirements" effectively prohibit financial institutions from handling customers' digital assets.

However, the White House has expressed strong opposition to the resolution, with President Biden threatening to veto it. The administration argues that curbing the SEC's regulatory power would introduce significant financial instability and market uncertainty.

The resolution now faces the Senate, where its future remains uncertain. If it passes, the threat of a presidential veto adds another layer of complexity. This situation highlights the ongoing debate about the balance between regulation and innovation in the cryptocurrency market. The outcome of this legislative effort could significantly influence the future landscape of cryptocurrency regulation in the United States.