US House to Consider Overriding Biden’s Veto on SAB 121 Next Week

President Joe Biden’s contentious veto of the Staff Accounting Bulletin 121 (SAB 121) might face a vote by the House of Representatives next week.

SAB 121, a proposed regulation requiring SEC-reporting entities that custody cryptocurrencies to record those holdings on their balance sheets, is on the House’s “legislation that may be considered” list, as per a schedule released by House Majority Leader Steve Scalise.

The House must vote on presidential vetoes as part of its constitutional duties, with the potential for the vote to occur on Tuesday or Wednesday.

Initially, the resolution to overturn the SEC’s SAB 121 garnered bipartisan backing in the House (228-182 votes) and Senate (60-38 votes) in May, before Biden vetoed it later that month.

Critics argue that SAB 121 could hinder American banks from custoding cryptocurrency exchange-traded products on a large scale, potentially leading to “concentration risk” by shifting control to non-bank entities.

To overturn Biden’s veto, a two-thirds majority vote in both the House and Senate is required.

In May, 55.6% of House members and 61.2% of Senate members voted for the resolution, indicating a need for increased Democratic support this time around.

“While challenging, it’s not impossible given the bipartisan nature of the FIT vote,” noted Alexander Grieve, who handles government affairs at cryptocurrency investment firm Paradigm.

In May, the House passed the Financial Innovation and Technology for the 21st Century Act, which aims to clarify how U.S. commodities and securities regulators manage cryptocurrency matters, with a vote of 279-136.

Meanwhile, President Biden and Republican candidate Donald Trump are intensifying their campaign efforts for the 2024 U.S. election in November.

Both candidates have been more focused on digital asset-related issues recently, which Kerri Langlais, chief security officer at Bitcoin miner TeraWulf, described as a positive development for the industry.

“Both Biden and Trump’s positions on crypto have become more favorable over the past year. We should continue to build on that progress through education and political efforts,” Langlais told.

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