U.S. House vote to overturn Biden’s SAB 121 veto set for Wednesday

As a researcher with a background in finance and experience following the regulatory landscape of the cryptocurrency industry, I am closely monitoring the upcoming vote in the U.S. House to overturn President Joe Biden’s veto on H.J. Res 109, which seeks to repeal the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121 (SAB 121).

The U.S. House of Representatives will hold a vote on a resolution aimed at annuling President Joe Biden’s veto of a bill that repealed Securities and Exchange Commission (SEC) Staff Accounting Bulletin 121, or SAB 121, in simpler terms.

Biden vetoed the legislation after the House voted against the controversial crypto custody rules.

According to SAB 121, banks are required to list crypto asset holdings as liabilities on their financial statements. Consequently, many institutions, including banks, have been hesitant to enter the crypto custody business due to this classification.

Back in 2022, the Securities and Exchange Commission (SEC) issued some regulatory guidance. However, in early May of this year, the House of Representatives voted to overturn that guidance.

Two-thirds majority need to overturn veto

Last week, I noted that House Majority Leader Steve Scalise included the previously vetoed legislation in the weekly schedule, signaling a possible vote during the current week.

According to a report from Fox Business journalist Eleanor Terrett that broke on Monday, a new vote has been set for Wednesday, July 10.

As an analyst, I can share that on Wednesday at 4:15PM, the House of Representatives will hold a vote aimed at overturning President @POTUS’s veto of H.J. Res 109. This resolution, which enjoys bipartisan support, seeks to repeal Securities and Exchange Commission (SEC) Chairman Jay Clayton’s SAB 121.

— Eleanor Terrett (@EleanorTerrett) July 8, 2024

In May, the House passed legislation opposing the SEC’s crypto custody guidance by a vote of 228 to 182. This bipartisan effort was supported by 21 Democrats and the majority of Republicans. The Senate similarly approved this action with a vote of 60 to 38, which included some Democratic votes alongside Republican ones.

As an analyst, I would put it this way: On Wednesday, achieving a favorable outcome will entail more than just having over half of the votes. According to the law, a two-thirds majority is mandatory in both houses. This translates to approximately 60 additional votes needed beyond the initial 228 that previously supported the vetoed legislation.

Experts express doubt over the feasibility of this endeavor, deeming it a significant challenge. Nevertheless, the US House has managed to secure a two-thirds majority on a cryptocurrency-related bill in the past.

In May, there was a vote in the House of Representatives where 279 members approved and 136 opposed the Financial Innovation and Technology for the 21st Century Act (FIT21). This legislation aims to establish a definitive regulatory structure for the crypto industry. Notably, it received backing from both political parties, with 71 Democrats being among its supporters.

As a crypto investor, I’m eagerly anticipating the US House’s decision on Wednesday. The crypto industry is hopeful that they will take action, and I personally can’t wait to see what transpires.

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2024-07-08 23:16