US House Expected to Approve Biden’s Veto on SAB 121

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Crypto News Squad
Jul 10, 2023

US House Expected to Approve Biden’s Veto on SAB 121

While there were reports earlier this week that the U.S. House could vote to override Biden’s veto of the SAS 121 regulatory oversight, there appears to be a 180-degree shift just ahead of voting day on Wednesday, July 10.

The Biden administration is reportedly on the verge of scoring a significant victory in the crypto crackdown by preserving SEC accounting rule SAB 121, which largely prohibits banks from storing digital assets.

SAB 121 – Is It a Stumbling Block to Crypto Innovation?

Earlier this year in May 2024, representatives of the US House of Representatives voted in favor of repealing the SAB 121 accounting rule in a vote to eliminate friction for traditional banking institutions to offer crypto custody services. Within a week, the Biden administration exercised its veto in an effort to maintain the SAB 121 regulations and preserve the SEC’s authority over the accounting rule.

Sources familiar with the matter told Fox Business that the resolution to repeal SAB 121 would not receive enough votes in the House for a two-thirds majority, thus overriding Biden’s veto. Biden would need to have about 60 House members change their votes to oppose it, an unlikely scenario.

Crypto enthusiasts will be watching Wednesday’s vote closely to see if Democrats support what they see as an anti-crypto stance. If the Biden administration continues to veto the repeal of SAB 121, it could send a negative signal to the crypto market, thus pouring cold water on the Democrat’s recent attempt to adopt a crypto-friendly approach.

Also Read: House Set for Crucial Vote on Biden’s SAB 121 Crypto Rule Veto

Crypto Regulations Come to the Fore

With GOP Presidential Candidate Donald Trump making a strong push for crypto, the issue of crypto regulations has come to the fore ahead of the 2024 US elections.

In line with Trump’s stance, the Republican National Committee recently included cryptocurrency issues in its 2024 platform, vowing to “end the Democrats’ illegal and un-American crackdown on crypto.”

Democrats are not eager to paint President Biden in a bad light, especially after the recent infighting within the party following his poor showing in the first presidential debate, sources familiar with the matter said. An unnamed House staffer told Fox Business:

“There are already a lot of Democrats attacking Biden, and a lot of members don’t want to add to that. I think Biden would be toast if the veto was overturned now.”
Also Read: ripple CLO Criticizes US Authority Over Crypto Regulation Approach

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Bhushan is a FinTech enthusiast and has a good grasp of financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is a constant learner and motivates himself by sharing the knowledge he acquires. In his spare time, he reads thrillers and sometimes explores his culinary skills.

The content presented may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.


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