United States President Joe Biden’s recent veto blocking Staff Accounting Bulletin 121 faces potential reconsideration in the House of Representatives next week. SAB 121, a proposed SEC rule requiring companies reporting to disclose cryptocurrency holdings on their balance sheets, is currently listed for possible legislative action by the House, according to a weekly schedule released by House Majority Leader Steve Scalise. Constitutional duty mandates the House to vote on overturning or affirming presidential vetoes, with the voting expected on Tuesday or Wednesday.
In May, a bipartisan majority in both the House (228-182) and Senate (60-38) supported a resolution to overturn the Securities and Exchange Commission’s SAB 121 rule, only for it to be vetoed by President Biden later that month. Opponents argue that SAB 121 could hinder American banks from effectively managing cryptocurrency exchange-traded products, potentially increasing “concentration risk” by shifting control to non-bank entities. However, overcoming Biden’s veto will require a two-thirds majority from both chambers of Congress.
With initial support in May falling short (55.6% in the House and 61.2% in the Senate), garnering additional Democratic support this time is crucial. “It’s a steep hill to climb but not impossible given how bipartisan the FIT vote was,” explained Alexander Grieve, a government affairs specialist at cryptocurrency investment firm Paradigm.
The Financial Innovation and Technology for the 21st Century Act, which aims to clarify how U.S. commodities and securities regulators handle cryptocurrency matters, passed the House with a 279-136 vote in May. Meanwhile, attention from both Biden and Republican candidate Donald Trump on digital asset issues has intensified as they campaign ahead of the 2024 U.S. election in November. This focus marks a positive shift for the industry, noted Kerri Langlais, chief security officer at Bitcoin miner TeraWulf, in recent comments to Cointelegraph.
Source:
Yuga Cohler