U.S. House to Vote on Overturning Biden’s SAB 121 Veto
Introduction
The U.S. House of Representatives will vote on a resolution to overturn President Joe Biden’s veto on a bill related to crypto custody rules. This bill had aimed to cancel the Securities and Exchange Commission (SEC)’s Staff Accounting Bulletin 121 (SAB 121).
Background on SAB 121
SAB 121 is a rule from the SEC that mandates banks holding crypto assets to record these holdings as liabilities on their balance sheets. Because of this rule, many banks and other institutional providers have avoided getting involved in the crypto asset class.
Biden’s Veto and Initial House Vote
President Biden vetoed the legislation after the House initially voted against the SEC’s crypto custody guidance. In May, the House voted 228-182 to strike down SAB 121, with support from both Republicans and 21 Democrats. The Senate also voted to overturn the guidance with a 60-38 vote, again showing bipartisan support.
Scheduled Vote to Overturn the Veto
Last week, House Majority Leader Steve Scalise added the vetoed legislation to the weekly schedule. A new vote is set for Wednesday, July 10, as reported by Fox Business journalist Eleanor Terret. This vote is critical because it requires a two-thirds majority to overturn the president’s veto. This means that around 60 more votes are needed in addition to the initial 228.
Importance of Two-Thirds Majority
For the veto to be overturned, the vote must achieve a two-thirds majority in both houses. This requirement makes the task challenging, as it is a significant increase from a simple majority. However, it is not impossible. The U.S. House has achieved such a feat before with other crypto-related bills.
Previous Crypto Legislation Success
In May, the House successfully passed the Financial Innovation and Technology for the 21st Century Act (FIT21) with a 279-136 vote. This bill aimed to provide a clear regulatory framework for the crypto industry and received strong bipartisan support, with 71 Democrats voting in favor.
Challenges Ahead
Despite previous successes, experts believe achieving the two-thirds majority to overturn Biden’s SAB 121 veto is a tough challenge. The crypto industry and its supporters are keenly watching, hoping for a positive outcome on Wednesday.
Implications for the Crypto Industry
If the House vote succeeds in overturning the veto, it could have significant implications for the crypto industry. It would mean that banks and other financial institutions might start offering crypto custody services, expanding the market and possibly leading to greater adoption of crypto assets.
Conclusion
The upcoming vote in the U.S. House of Representatives to overturn President Biden’s veto on SAB 121 is a crucial event for the crypto industry. With a two-thirds majority needed, the outcome is uncertain, but the potential impact on crypto regulations and market adoption is significant. The industry will be watching closely as the vote unfolds on Wednesday.
Summary of Key Points
- U.S. House Vote: Set to overturn Biden’s SAB 121 veto.
- SAB 121: Requires banks to record crypto assets as liabilities.
- Initial Votes: House voted 228-182; Senate voted 60-38 to strike down SAB 121.
- Scheduled Vote: New vote set for Wednesday, July 10.
- Two-Thirds Majority: Needed to overturn the veto, requiring around 60 more votes.
- Previous Success: House achieved two-thirds majority for FIT21 in May.
- Challenges: Experts believe achieving the required majority is tough.
- Implications: Success could lead to banks offering crypto custody services and greater market adoption.
The crypto industry is keenly awaiting the results of the U.S. House vote on Wednesday. Whether or not the two-thirds majority is achieved will have a lasting impact on the future of crypto regulations in the United States.
