In a significant development for the US cryptocurrency sector, the House of Representatives is anticipated to vote next week on the contentious cryptocurrency legislation known as SAB 121, which pertains to the Securities and Exchange Commission (SEC). In May, President Joe Biden exercised his veto power against SAB 121, which had been passed by both the House and Senate.
According to the Um schedule, the resolution might come to a vote in the Chamber on either July 9 or 10. To overturn the presidential veto, a two-thirds majority in both chambers of Congress is required.
The proposed legislation has already been approved by both the House and Senate, with the House passing it by a vote of 228 to 182 and the Senate approving it with a 60 to 38 vote. Biden’s veto has intensified the political and regulatory scrutiny of Bitcoin and the broader cryptocurrency industry in the US.
SAB 121 aims to repeal Staff Accounting Bulletin No. 121, issued by the SEC, which imposes stringent requirements on financial institutions for the custody of digital assets. The bill seeks to challenge the SEC’s guidance that classifies crypto assets as liabilities on company balance sheets.
In his letter to the House of Representatives justifying the veto, Biden argued that rescinding the guidance would impair the SEC’s capacity to enforce protections and ensure investor safety. He stated, “SAB 121 represents the well-considered judgment of SEC technical staff on the accounting responsibilities of companies dealing with cryptoassets. By invoking the Congressional Review Act, this resolution led by Republicans would unjustly limit the SEC’s ability to set proper safeguards and tackle future issues. Reversing this expert judgment threatens to undermine the SEC’s broader regulatory authority on accounting practices. My Administration will not endorse measures that jeopardize consumer and investor protection.”
Given the current circumstances, some observers believe that achieving the two-thirds majority required to override the veto on SAB 121 may prove challenging.
**Disclaimer:** The opinions expressed by the author or others mentioned in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading in cryptocurrencies involves financial risk.
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