Major Crypto Shake-Up Coming Soon!
Exciting developments are underway in the U.S. House of Representatives, where a critical vote is scheduled to take place next week. This vote will determine whether President Biden’s veto of Staff Accounting Bulletin 121 (SAB 121) will be overturned. This proposed rule mandates that companies reporting to the SEC disclose their cryptocurrency holdings on their balance sheets, following a schedule set by House Majority Leader Steve Scalise. Curious to know more? Keep reading!
Implications for the Crypto Market
President Biden’s veto of SAB 121 represents a pivotal moment in the ongoing discourse surrounding cryptocurrency regulation. Despite significant bipartisan support in Congress to repeal SAB 121, the president maintains his position, stressing the importance of robust consumer and investor protections.
- The introduction of SAB 121 by the SEC in 2022 has faced strong opposition from both the crypto industry and banks.
- Critics argue that the rule imposes high costs on offering digital asset services, dissuading banks from venturing into this sector.
There has been substantial backing for the resolution to repeal SAB 121, with endorsements from 11 Senate Democrats and a decisive 228-182 majority in the House. Advocates for the repeal argue that the SEC’s guidance limits Americans’ ability to store digital assets in traditional banks.
Challenges on the Horizon
In May, the House approved a measure supporting SAB 121 with a 228-182 vote, primarily driven by Republicans and 21 Democrats. The Senate also backed it with a 60-38 vote, with support from Senate Majority Leader Chuck Schumer. However, overriding President Biden’s veto requires a two-thirds majority in both chambers.
- Alexander Grieve of Paradigm is optimistic about the House’s capability to garner adequate votes to override the veto, citing past bipartisan support for similar measures.
- Cody Carbone from the Chamber of Digital Commerce, on the other hand, is more skeptical, questioning the feasibility of rallying the necessary votes.
A Race Against Time for a Pivotal Decision
The House must secure approximately 60 more votes than the 228 previously obtained—a significant challenge within a short timeframe. The crucial vote, anticipated on Tuesday or Wednesday, will test bipartisan backing for the Financial Innovation and Technology for the 21st Century Act.
This act aims to clarify regulations concerning cryptocurrency and other digital assets.
As the 2024 U.S. election approaches, both President Biden and Republican candidate Donald Trump are increasingly focusing on digital asset issues, hinting at potential shifts toward more favorable positions for the cryptocurrency industry.
Get ready for a major crypto shakeup! The U.S. House of Representatives is poised to vote next week on whether to overturn President Biden’s veto of Staff Accounting Bulletin 121 (SAB 121). This proposed rule mandates that companies reporting to the SEC must list their cryptocurrency holdings on their balance sheets, following a schedule set by House Majority Leader Steve Scalise.
Read on to know more.
What’s at Stake for the Crypto Market?
President Biden’s veto of SAB 121 is a crucial moment in the ongoing debate over cryptocurrency regulation. Despite broad bipartisan backing in Congress to repeal SAB 121, the president remains steadfast, emphasizing the need for strong consumer and investor protections.
Introduced by the SEC in 2022, SAB 121 has drawn sharp criticism from both the crypto industry and banks. Critics argue that the rule imposes prohibitive costs on offering digital asset services, discouraging banks from expanding into this area.
The resolution to repeal SAB 121 has garnered significant support, including endorsements from 11 Senate Democrats and a decisive 228-182 majority in the House. Advocates for the repeal assert that the SEC’s guidance hampers Americans’ ability to store digital assets in traditional banks.
Hurdles Ahead!
In May, the House passed a measure supporting SAB 121 with a 228-182 vote, driven primarily by Republicans and 21 Democrats. The Senate also endorsed it with a 60-38 vote, featuring backing from Senate Majority Leader Chuck Schumer. However, overturning President Biden’s veto requires a two-thirds majority in both the House and Senate.
Alexander Grieve of Paradigm is optimistic about the House’s ability to secure enough votes to override the veto, citing previous bipartisan support for similar measures. Conversely, Cody Carbone from the Chamber of Digital Commerce is more skeptical, doubting the feasibility of rallying the necessary votes.
A Tight Timeline for a High-Stakes Decision
The House would need to secure approximately 60 more votes than the 228 it previously mustered—a formidable challenge within a single week. The pivotal vote, expected on Tuesday or Wednesday, will test bipartisan support for the Financial Innovation and Technology for the 21st Century Act.
This act seeks to clarify regulations surrounding cryptocurrency and other digital assets.
As the 2024 U.S. election looms, both President Biden and Republican candidate Donald Trump are increasingly focusing on digital asset issues, signaling a potential shift toward more favorable stances for the cryptocurrency industry.
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