Crypto News Today House Prepares to Contest Bidens Veto of SAB 121
**Story Highlights**
Next week, the U.S. House of Representatives will cast a decisive vote on whether to overturn President Biden’s veto of Staff Accounting Bulletin 121 (SAB 121). This rule requires companies to disclose their cryptocurrency holdings on their balance sheets. Despite broad bipartisan support for the repeal, with notable backing from both Democrats and Republicans, President Biden has maintained his stance, emphasizing the necessity of robust protections for consumers and investors.
**The Implications for the Crypto Sector**
President Biden’s veto of SAB 121 represents a critical juncture in the debate over cryptocurrency regulations. The rule, introduced by the SEC in 2022, has been heavily criticized by the crypto industry and banks alike. Critics argue that it imposes excessive costs on providing digital asset services, potentially discouraging banks from engaging with cryptocurrencies.
The movement to repeal SAB 121 has seen considerable backing, including support from 11 Senate Democrats and a decisive 228-182 majority in the House. Proponents of the repeal contend that the SEC’s directive restricts Americans’ ability to store digital assets in traditional financial institutions.
**Challenges Ahead**
In May, the House passed a resolution supporting the repeal of SAB 121 with a 228-182 vote, driven primarily by Republicans and 21 Democrats. The Senate also supported the repeal with a 60-38 vote, endorsed by Senate Majority Leader Chuck Schumer. However, overturning President Biden’s veto requires a two-thirds majority in both the House and Senate.
Alexander Grieve from Paradigm is hopeful about the House’s chances of securing enough votes to override the veto, pointing to previous bipartisan support for similar legislation. Conversely, Cody Carbone from the Chamber of Digital Commerce is less optimistic, questioning whether the necessary votes can be rallied.
**A Critical Vote on the Horizon**
The House will need approximately 60 more votes than the 228 it previously secured—an ambitious goal within a single week. The crucial vote, anticipated for Tuesday or Wednesday, will assess bipartisan backing for the Financial Innovation and Technology for the 21st Century Act, which aims to clarify regulations around cryptocurrency and other digital assets.
As the 2024 U.S. presidential election approaches, both President Biden and Republican candidate Donald Trump are intensifying their focus on digital asset issues, hinting at a potential shift towards more favorable policies for the cryptocurrency industry.