The US House of Representatives could overturn President Joe Biden’s veto of the crypto custody bill next week, sparking a bold recovery across the recently battered crypto market.
In May, the US House voted to overturn the Securities and Exchange Commission SAB 121 rule that requires regulated firms custodying cryptocurrencies to record their holdings on balance sheets.
However, President Biden later vetoed the bill, saying it could affect the ability of the SEC to set up the much-needed guardrails in the industry. The President also noted it would affect the well-being of investors and customers.
The bill is now back in the House of Representatives and has been classified as “legislation that may be considered.” The US House can overturn or uphold the President’s veto.
The vote will happen next week, and for Biden’s veto to be overturned, a two-thirds majority vote from the Senate and the House of Representatives is required.
Paradigm’s Alexander Grieve says overturning the bill could be a “steep hill to climb.” However, given its bipartisan support, an overturn is still possible.
Remember when Biden vetoed the SAB121 rollback? It’s back on the House floor next week — let’s see if the House can rally a 2/3 vote to overturn the veto (steep hill to climb but not impossible given how bipartisan the FIT vote was) https://t.co/2wfWEf49Q5
— Alexander Grieve (@AlexanderGrieve) July 5, 2024
The bill could be overturned as the Democratic and Republican parties seek to woo crypto voters in the upcoming US Presidential elections. As reported earlier by ZyCrypto, some of the biggest supporters of the Democratic party are advocating for a softer stance on cryptocurrencies as the former US President continues to woe crypto voters.
A Bold Market Recovery Could Be On The Horizon
If the House gets the two-thirds majority vote needed to overturn the bill, it could be a much-needed win for the cryptocurrency market, which has been battered by an influx of selling pressure and declining prices.
The market has already recorded a bold recovery in the last 24 hours, with the global market cap up by 4.3%. All the top-ten cryptos by market cap are also trading in the green today.
Bitcoin and Ether have gained by 4.5% and 5.3%, respectively, in the last 24 hours. XRP and Cardano are among the top gainers, with an 8% and 7% gain, respectively.
According to analyst @MikybullCrypto on X, Bitcoin’s two-day chart shows a re-accumulation phase on the Wyckoff market cycle. Once the accumulation phase is complete, the market could enter a bullish phase.
The market is also showing signs of cooling off, with the total net inflows into spot Bitcoin exchange-traded funds (ETFs) on July 4 reaching $143 million despite the declining prices.