In the ever-evolving world of cryptocurrency, the latest development that has sparked significant interest is the upcoming vote in the U.S. House of Representatives on overriding President Biden’s veto of SAB 121. This accounting bulletin has been a source of controversy within the crypto industry, and the upcoming vote promises to be a critical moment in the ongoing efforts to shape the regulatory landscape for digital assets.
The Contentious SAB 121
The U.S. House is set to vote next week on a resolution to overturn Staff Accounting Bulletin 121, also known as SAB 121. This bulletin, which was vetoed by President Biden in May, has drawn criticism from the crypto industry due to concerns that it could prevent banks from safely custodying digital assets. The bulletin requires firms that custody cryptocurrencies to record customer crypto holdings as liabilities on their balance sheets.
“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 ⅔ vote to overturn the veto (steep hill to climb but not impossible given how bipartisan the FIT vote was,” – Alexander Grieve, Paradigm
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 Road Ahead
The upcoming vote is a constitutional obligation, and political experts are divided on whether lawmakers have enough votes to override President Biden’s veto. While the initial House vote on the measure was 228-182, with bipartisan support, overturning the veto would require a two-thirds majority in both the House and the Senate.
| Experts’ Views |
|---|
| Alexander Grieve, Paradigm: “It’s not impossible given the bipartisan support for the initial measure.” |
| Cody Carbone, Chamber of Digital Commerce: “It’ll be very difficult to change 60 member’s minds in the next week. It’ll ultimately fail.” |
As the cryptocurrency industry closely watches the developments, the outcome of this vote could have significant implications for the future of digital asset regulation and the ability of financial institutions to safely custody cryptocurrencies.
