As a seasoned crypto investor with a keen interest in the regulatory landscape, I’m closely following the recent developments regarding SAB 121 and the US House and Senate’s response to President Biden’s veto. The bipartisan effort to stop the bulletin from being enacted was a positive step towards enabling mainstream adoption of digital assets by financial institutions. However, Biden’s decision to overturn this collective decision has brought uncertainty back into the equation.


The US House and Senate will be required to cast votes on whether to uphold or override President Biden’s veto of a legislative action aimed at repealing the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121 (SAB 121), which was initially blocked with a bipartisan vote in May. This bulletin mandates that financial institutions report their digital asset holdings on their balance sheets.

The passage of that legislation would have posed challenges for financial institutions in incorporating crypto assets, potentially hindering the broader acceptance of this asset class. The bipartisan effort to halt the bulletin received widespread approval within the cryptocurrency sphere, but US President Joe Biden ultimately overruled this consensus, restoring SAB 121. This legislative process transpired in May and June of this year.

Legislators hold the responsibility, as outlined in the constitution, to cast votes on overriding a veto by President Biden. A two-thirds majority opposing his veto is required to reverse it. The vote is scheduled for July 9 or 10. Alexander Grieve, who works in government affairs and policy at Paradigm, commented on X, “Don’t forget about the rejected SAB121 rollback by Biden? It’s headed back to the House next week.” He continued, “We’ll see if the House can muster enough votes for a two-thirds majority to override the veto.”

As a seasoned analyst, I’d like to share that Majority Leader Steve Scalise unveiled legislation plans on his website in conjunction with the House’s schedule for other legislative business. Here’s what could potentially be under consideration: [Legislation that may be considered]

Message for a veto of H.J. Res. 109:

At the 2024 US presidential election, this pivotal legislation will be put to a vote as cryptocurrencies gain importance in political discourse. Pro-crypto constituents are leaning towards the Republican Party due to Trump’s advocacy and backing of the industry. If the Democrats oppose Biden’s veto on this matter, they risk losing more votes from pro-crypto supporters.

 

Image by LiamEnea from Pixabay

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2024-07-07 17:51