US House to Decide on Reversing Bidens Veto of SAB 121 Crypto Accounting
The US House of Representatives is preparing for a crucial vote this week that could have significant implications for the cryptocurrency industry. The vote will determine whether to overturn President Joe Biden’s veto of a bill aimed at eliminating the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin (SAB) 121.
SAB 121, issued by the SEC in March 2022, has been a contentious issue in the crypto space. The bulletin requires certain companies, particularly those providing crypto custody services, to classify digital assets held for customers as liabilities on their balance sheets. This accounting practice has raised concerns within the industry, with many arguing that it could discourage banks and financial institutions from offering crypto custody services.
The original bill to curb SAB 121 received bipartisan support and passed through both chambers of Congress. The House approved it with a 228-182 vote, while the Senate passed it 60-38. However, President Biden vetoed the bill in May, citing concerns that removing the SEC’s guidance would hinder the agency’s ability to implement safeguards and protect investors.
Now, the House is preparing to vote on whether to override the presidential veto. This is no easy task, as it requires a two-thirds majority in both the House and the Senate, a significantly higher threshold than the original votes.
The likelihood of a successful override is uncertain, with political experts divided on the matter. Some believe that the bipartisan support for crypto-related bills in recent votes could increase the chances of a successful override. However, others argue that the House would need about 60 more votes than it initially had to reach the two-thirds threshold.
This vote comes at a time when the crypto industry and the broader economy are facing significant events. The US is set to release Consumer Price Index (CPI) and Producer Price Index (PPI) data for June, which could influence future monetary policy decisions. Federal Reserve Chair Jerome Powell is scheduled to deliver his semi-annual monetary policy testimony, and there will be a Senate Agriculture Committee hearing on the Oversight of Digital Commodities.
In addition, Representative Ro Khanna is leading a Democratic crypto roundtable with industry leaders, including billionaire Mark Cuban, to develop a strategy to counter potential anti-crypto policies.
The crypto market has already shown sensitivity to these upcoming events, with Bitcoin experiencing a 5% drop on Sunday and altcoins seeing even steeper corrections. This highlights the importance of regulatory clarity and economic indicators for the crypto industry.
The vote on SAB 121 represents a critical moment for crypto regulation in the US. If the veto is overturned, it could signal a more favorable regulatory environment for crypto custody services. However, if the veto stands, it may reinforce the SEC’s approach to crypto accounting practices.
