The US House and Senate are set to vote on President Biden’s veto of legislators’ decision to repeal the SEC’s Staff Accounting Bulletin (SAB 121) in May. This guidance, which required financial institutions to report their digital asset holdings on their balance sheets, was met with bipartisan opposition due to concerns that it would hinder the integration of crypto-related products and slow down the mainstream adoption of cryptocurrencies.
Despite the bipartisan vote to stop the bulletin, President Biden vetoed the decision, putting SAB 121 back on track. The vote, which took place in May and June with House (228–182 votes) and Senate (60–38) approval, is now up for review by legislators who have the responsibility to vote on the veto. A two-thirds majority vote against Biden’s veto could potentially overturn it, with the vote scheduled for July 9 or 10.
Alexander Grieve, representing the crypto investment firm Paradigm, highlighted the upcoming vote, stating, “Remember when Biden vetoed the SAB121 rollback? It’s back on the House floor next week.” Grieve, who focuses on government affairs and policy at Paradigm, emphasized the importance of rallying a 2/3 vote in the House to overturn the veto.
Majority leader Steve Scalise announced the upcoming vote on his website, listing the legislation that may be considered, including the veto message related to SAB 121. This vote comes at a crucial time as crypto-related issues have gained prominence in the lead-up to the 2024 US presidential election. Pro-crypto voters, swayed by Trump’s endorsement and support of the industry, are leaning towards the Republican Party. If the Democrats side with Biden’s veto, they risk losing support from pro-crypto voters.
The discussion around SAB 121 and its potential impact on the crypto industry underscores the growing significance of digital assets in the financial and political landscape. As legislators prepare to vote on the veto, the outcome could have far-reaching consequences for the future of cryptocurrencies in the US. Stay tuned for updates on this developing story.