The U.S. House is gearing up for a crucial vote scheduled for Wednesday to determine the fate of President Joe Biden’s recent veto on legislation regarding the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121, also known as SAB 121. This bulletin has been a point of contention as it requires banks that custody crypto assets to list them as liabilities on their balance sheets, dissuading institutional providers from entering the crypto market.
President Biden vetoed the bill in response to the House’s rejection of the SEC’s crypto custody rules. Now, the House needs a two-thirds majority to overturn the veto, a challenging task considering the initial vote count of 228-182 against the SEC’s guidance. The Senate also supported overturning SAB 121 with a vote of 60 to 38, showcasing bipartisan agreement on the issue.
House Majority Leader Steve Scalise has set the stage for the upcoming vote, scheduled for Wednesday, July 10. The House will need to gather additional votes beyond the original 228 to reach the required two-thirds majority. While experts believe achieving this feat may be challenging, it’s not unprecedented in the realm of crypto-related legislation.
In a similar instance earlier this year, the House successfully passed the Financial Innovation and Technology for the 21st Century Act (FIT21) with a decisive vote of 279-136, supported by 71 Democrats. This bill aimed to establish a clear regulatory framework for the crypto industry, garnering bipartisan backing and demonstrating the House’s ability to secure a two-thirds majority when necessary.
As the crypto industry eagerly awaits the outcome of Wednesday’s vote, all eyes are on the House to see if they can rally enough support to override President Biden’s veto on SAB 121. The decision will undoubtedly have far-reaching implications for the future of crypto custody regulations and institutional involvement in the digital asset space. Stay tuned for updates on this developing story.