The House of Representatives may vote on the controversial veto of the SAB 121 bill by US President Joe Biden next week.
President Joe Biden’s veto of Staff Accounting Bulletin 121 is anticipated to be voted on by the House of Representatives, a decision that has stirred some controversy. In May, President Biden blocked a resolution that sought to repeal Staff Accounting Bulletin 121, or SAB 121.
The bulletin has generated significant discussion in the crypto industry over the past year, as there are concerns that it may impede institutions’ ability to effectively safeguard digital assets. Cryptocurrency custody companies are required to report client crypto holdings as liabilities on their balance statements.
House Majority Leader Steve Scalise has posted a weekly schedule, which indicates that SAB 121 is currently on the House’s “legislation that may be considered” list. This proposed rule would mandate that SEC-reporting entities that maintain cryptocurrency holdings disclose those holdings on their balance statements.
Next week, the resolution may be discussed on Tuesday or Wednesday, as indicated by the weekly schedule. It is essential that they execute their constitutional obligation and conduct an additional vote on SAB 121.
In May, the measure was approved by the full House with a vote of 228-182, with the majority of Republicans and 21 Democrats supporting it. The Senate voted in favor of the measure 60 to 38 a week later, with a number of Democrats, including Senate Majority Leader Chuck Schumer, D-N.Y., voting in favor.
Critics contend that SAB 121 could impede the effective management of crypto exchange-traded products on a large scale by American institutions. This, in turn, may result in a potential risk of concentration by granting more control to non-bank entities.
However, a two-thirds majority approval from both the House and Senate will be necessary to override Biden’s veto.
It is evident that Democrats must provide additional support this time around, as only 55.6% and 61.2% of the House and Senate members voted for the resolution in May.
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