The US House of Representatives Vote on Senate Bill 121🏛️
The House of Representatives of the United States of America is gearing up to vote on a crucial decision regarding President Joe Biden’s veto of Staff Accounting Bulletin 121 (SAB 121), sparking controversy within the cryptocurrency industry. Senate Bill 121, also known as the “legislation under consideration,” has stirred heated debates, with concerns that it may hinder banks in safeguarding digital assets effectively.
Understanding Senate Bill 121📜
Under the proposed rule SAB 121, organizations reporting to the SEC and holding cryptocurrency would need to include these holdings on their balance sheets. This entails businesses that custody cryptocurrency recording their customers’ cryptocurrency holdings as liabilities on their balance sheets. Critics fear that this rule could limit American banks’ ability to manage large-scale cryptocurrency exchange-traded products, posing a potential concentration risk.
The Voting Procedures🗳️
The House of Representatives is expected to vote on Senate Bill 121 next week, requiring a two-thirds majority from both the House and Senate to override President Biden’s veto. The measure passed in the House with a 228-182 vote in May, gaining bipartisan support. The Senate also approved the measure 60-38, with some Democrats backing it, including Senate Majority Leader Chuck Schumer, signaling a favorable outlook.
For the override to succeed, 290 members must vote in favor, necessitating additional Democratic support compared to the previous vote. Alexander Grieve from Paradigm believes achieving a two-thirds vote is challenging yet feasible, emphasizing the need for bipartisan cooperation.
Ensuring Additional Support for Override🤝
If the House fails to secure a two-thirds majority, the regulation mandating SEC-reporting firms to disclose bitcoin holdings on their balance sheets could remain in place. The outcome hinges on garnering more Democratic backing, underscoring the significance of the imminent vote in shaping the regulatory landscape for cryptocurrencies.
Hot Take on the US House of Representatives Vote🔥
The upcoming vote on SAB 121 signifies a pivotal moment for the crypto industry, poised to determine the fate of regulatory obligations related to disclosing cryptocurrency holdings. With the necessity of a two-thirds majority vote, the role of additional Democratic support cannot be overstated in influencing the outcome of Senate Bill 121.
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