The US House of Representatives Votes Against SEC’s Crypto Custodian Accounting Bulletin
The US House of Representatives recently made a significant decision regarding the Securities and Exchange Commission (SEC) bulletin on crypto custodian accounting. Here is what you need to know:
Democrats And Republicans Unite
On May 8, a bipartisan group of House Representatives came together to vote in favor of H.J.Res.109, aiming to nullify the Staff Accounting Bulletin (SAB) 121. This bulletin mandates custodians of cryptocurrencies and digital assets to recognize these assets as liabilities in their accounting records.
- 21 Democrat House Representatives combined with 207 Republican Representatives to pass the resolution
- This bulletin has prevented US banks from holding Bitcoin and other cryptocurrencies, impacting their ability to engage in crypto-related services
Implications of the Vote
The vote in the House saw 228 representatives supporting the resolution, with 182 against it. If the Senate approves this resolution, financial institutions will be able to hold cryptocurrencies under more feasible conditions.
- If the Senate passes the resolution, it may lead to increased opportunities for financial institutions in the crypto space
- There is uncertainty regarding the bill passing in the Senate or receiving approval from the President
Industry Criticisms
Notable figures within the crypto industry have criticized the SAB 121 rule extensively. Patrick McHenry, the Chairman of the Financial Services Committee, condemned the SEC’s overreach in enforcing this regulation.
- Patrick McHenry labeled the bulletin as a prime example of the SEC’s overregulation under Gary Gensler
- The bipartisan support for the resolution showcases concerns about consumer protection and market innovation
President Biden’s Stance
Following the House’s decision, President Biden’s administration expressed opposition to the resolution. The White House views this move as disruptive to the SEC’s efforts in safeguarding investors in the crypto market and maintaining financial stability.
- The administration believes that restricting the SEC’s regulatory powers could lead to financial instability and market uncertainty
- President Biden is prepared to veto the resolution if it passes the Senate
Hot Take: US House Votes Against SEC’s Crypto Custodian Accounting Bulletin
The US House of Representatives has taken a firm stand against the SEC’s bulletin on crypto custodian accounting, signaling potential shifts in the regulatory landscape for cryptocurrencies.
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