US House to vote on overturning SEC’s SAB 121 impacting asset custody.
Bipartisan support and alternative bills crucial for crypto regulation.
The US House of Representatives is poised for a critical vote this week with substantial implications for the crypto industry. Lawmakers will decide whether to overturn President Joe Biden’s veto of a bill aimed at eliminating the SEC’s Staff Accounting Bulletin (SAB) 121.
This bulletin mandates that companies offering crypto custody services record digital assets held for customers as liabilities. It is a move that has sparked significant controversy in the crypto space.
Eleanor Terrett, a journalist, reported that the House vote is scheduled for Wednesday. Despite bipartisan support, House leaders do not anticipate many Democrats changing their votes. The bipartisan bill, HR 5741, introduced by Rep. Mike Flood and co-sponsored by several other representatives, offers an alternative pathway to address SAB 121’s impact.
Additionally, a policy rider in the House Appropriations Committee’s budget bill seeks to prohibit the SEC from using funds to enforce SAB 121, contingent on Senate approval.
Can Biden Veto Be Overrided?
Since its issuance in March 2022, critics have argued that SAB 121 potentially deters banks and financial institutions from offering crypto custody services. While the initial bill to curb SAB 121 passed both chambers of Congress with bipartisan support, President Biden vetoed it in May. He cited the need for regulatory safeguards.
Overriding the veto requires a two-thirds majority in both the House and Senate, a challenging feat. Political experts remain divided on the likelihood of successfully overturning SAB 121. But the vote highlights the ongoing debate over crypto regulation. And it’s future in the financial industry.
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