The US House of Representatives has approved a measure to repeal the 2022 SEC advisory on cryptocurrency custodian accounting.
In a statement, US President Joe Biden voiced his opposition to the resolution and hinted at the possibility of a veto if the law were to pass the Senate.
H.J.Res.109, which seeks to invalidate Staff Accounting Bulletin (SAB) 121, received support from 207 Republican House members and 21 Democratic members on May 8. All digital asset and cryptocurrency custodians must record these assets as a liability under the bulletin.
According to Bitcoinist’s reporting, the regulation has rendered US banks unable to retain Bitcoin or any other cryptocurrency as it has rendered their crypto business “non-viable.” “The SEC’s accounting regulations for entities that hold crypto are unjust and inhibit banks wishing to offer such services,” said Republican Congressman Mike Flood.
The vote on Wednesday was successful, with 182 representatives opposed to it and 228 in favour. The next step in getting the law to the president is for the Senate to vote on it. If the resolution were to pass, banks would be allowed to legally store Bitcoin and other cryptocurrencies.
A “greater number of supportive House Democrats than thought” were involved in the bipartisan agreement, according to Fox Business Journalist Elizabeth Terret. Nonetheless, the journalist holds the opinion that the measure “probably will not succeed in the Senate or reach the desk of the President.”
Patrick McHenry, the Chairman of the Financial Services Committee, is among the prominent individuals who have severely criticized SAB 121.
The committee chair criticized the memo on Wednesday, saying it was “one of the most apparent instances of the regulatory overreach that has marked Gary Gensler’s time at the SEC.” House Chair McHenry expressed his support for the measure during his floor statement, saying:
The safeguarding of consumers and promotion of innovation in digital asset markets are both emphasised by this bipartisan resolution. It is equally essential to put a halt to the SEC’s attempts to bypass the Administrative Procedure Act and its regulatory power grabs.
The “unnecessary” SAB 121 regulation has been the subject of Senator Cynthia Lummis’s criticism on many occasions. The senator who is in favor of cryptocurrency voiced her disapproval of the US government’s “overreach” on the business on May 1, drawing attention to her worries about the DOJ’s “hyper-aggressive” claims against the field.
The White House made a statement after the announcement of the US House of Representatives’ favorable vote. The statement states that the resolution’s approval is “seriously opposed” by Biden’s administration.
According to the president, the law would hinder the SEC’s efforts to protect investors in crypto-asset markets and the overall financial system, calling it “disruptive.”
The statement goes on to say that the SEC might be “restricted” from using the Congressional Review Act to make sure that future rules are suitable.
According to the White House, “limiting” the SEC’s regulatory authority over digital assets “would generate severe financial instability and market uncertainty.” In the end, the statement confirms that if the resolution were to pass the Senate, President Biden would use his veto power.
Also Read: Pantera Capital’s TON Investment Is The Web3 Industry’s Biggest Venture Capital Fund
