Deciding Day For Crypto Legislation: US House of Representatives Vote Looms
On July 10, the US House of Representatives is set to make a crucial decision on key crypto legislation that may potentially override President Joe Biden’s veto concerning the Securities and Exchange Commission’s (SEC) resolution to repeal Staff Accounting Bulletin 121 (SAB 121). This upcoming vote has generated considerable interest due to its implications on the custody of Bitcoin and other digital assets by financial institutions.
Background on SAB 121
In 2022, the SEC introduced SAB 121, which obligates banks storing cryptocurrency to declare these assets as liabilities on their financial reports. The crypto industry has criticized this accounting rule, arguing that the additional regulatory burden dissuades banks and other institutional players from engaging with digital assets.
Election Results and Consequences
The House originally approved the resolution opposing SAB 121 in May with a vote of 228-182, receiving support from 21 Democrats and unanimous Republican backing. Despite this, President Biden vetoed the resolution, leading to the scheduling of a veto override vote that demands a two-thirds majority in both the House and Senate for approval.
- Ron Hammond from the Blockchain Association highlighted the unique political landscape, stating that “crypto has become a campaign matter” and emphasized the need for bipartisan support.
- Perianne Boring of the Digital Chamber stressed the urgency of garnering more Democratic backing in the upcoming vote to nullify SAB 121.
Alternate Routes
Amid challenges in overturning the veto, lawmakers have explored alternative legislative avenues. Eleanor Terrett from Fox Business revealed discussions revolving around HR 5741 – Uniform Treatment for Custodial Assets Act as a potential solution to override SAB 121. Additionally, the House Appropriations Committee has proposed a policy rider in its budget bill to limit the SEC’s use of funds for implementing SAB 121, indicating a different approach to alter the regulatory landscape for crypto custody.
- Various strategies are being considered to navigate the complexities of the impending decision and potential implications for the crypto sector.
Current Market Situation
As of the latest update, the price of Bitcoin stands at $57,371, illustrating the ongoing volatility and uncertainty within the crypto market amidst the legislative developments.
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