House Prepares for Decisive Vote on President Biden’s Rejection of SAB 121 Cryptocurrency Regulation
The U.S. House is set to vote next week to overturn President Joe Biden’s veto of Staff Accounting Bulletin 121, also known as SAB 121. This bulletin has caused controversy in the crypto industry as it requires firms holding crypto assets for customers to record them as liabilities.
House Majority Leader Steve Scalise mentioned that the vote could take place on either Tuesday or Wednesday. The vote is considered a constitutional duty following the veto, with the measure previously passing the House by a 228-182 margin.
Bipartisan Push to Overturn SAB 121 Veto
SAB 121 requires companies holding crypto assets for clients to classify them as liabilities. This rule has raised concerns within the banking and crypto sectors over its potential impact on the safeguarding of digital assets.
There is bipartisan support for overturning SAB 121, with the Senate passing it in May with a 60-38 vote, including support from Senate Majority Leader Chuck Schumer. However, overturning the veto necessitates a two-thirds majority in both the House and Senate.
Alexander Grieve from Paradigm acknowledged the challenge of overturning the veto but remains optimistic about the potential outcomes. There was previous bipartisan support for the FIT21 crypto market structure bill, showing a path forward.
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Challenges Mount in Overturning Crypto Rule Veto
Overturning the veto, despite bipartisan backing, presents challenges. The House needs 290 votes, a significant increase from the initial 228 votes in favor. Cody Carbone from the Chamber of Digital Commerce expressed skepticism about reaching this threshold.
Carbone highlighted the difficulty of changing the minds of 60 members in one week. While recognizing the importance of consumer protection and good governance, he believes the veto override attempt will likely fall short.
The crypto industry is cautiously hopeful about the upcoming vote, understanding the challenges ahead in overturning the veto. Efforts are focused on garnering additional support within the House.
The potential outcome of the vote holds significant implications for the crypto industry. Overturning the veto could alleviate concerns regarding banks’ ability to secure digital assets, while upholding it may require firms to adapt to comply with SAB 121.
The crypto industry has strongly voiced concerns over the rule, arguing that it could impede innovation and hinder digital asset growth. The pending vote will play a crucial role in shaping the regulatory environment for crypto.
Supporters of overturning the veto stress the need for flexibility for financial institutions, stating that SAB 121 places unjust burdens on companies holding crypto assets. The vote will serve as a key indicator of congressional support for the crypto industry.
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