US House and Senate will be tasked with voting on Biden vetoing legislators choosing to repeal the SEC’s Staff Accounting Bulletin (SAB 121) in May. This guidance received a bipartisan vote to stop it from going through, as it needed financial institutions to record their digital asset holdings on their balance sheets.
Doing that would make it harder for institutions to integrate crypto-related products, stifling the mainstream adoption of the asset class. While the bipartisan vote to stop the bulletin was received with great applause by the crypto community, US President Joe Biden vetoed the collective decision, bringing SAB 121 back on its tracks. The bipartisan vote (House (228–182 votes) and Senate (60–38)) occurred in May and June 1.
However, legislators have the constitutional obligation to vote on the veto, and a two-thirds majority against Biden’s veto can overturn it. The vote will occur on July 9 or July 10. Alexander Grieve from crypto investment firm Paradigm stated on X, “Remember when Biden vetoed the SAB121 rollback? It’s back on the House floor next week.” Grieve handles government affairs and policy in his role at Paradigm and explained further about the development, “let’s see if the House can rally a 2/3 vote to overturn the veto.”
Majority leader Steve Scalise broke the announcement on his website alongside the schedule for other legislative business of the House, “Legislation that may be considered:
Veto message to accompany H. J. Res. 109 – Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Securities and Exchange Commission relating to “Staff Accounting Bulletin No. 121” (Sponsored by Rep. Flood / Financial Services Committee).”
The vote on this significant legislation happens as crypto has become a topic relevant to the 2024 US presidential election. Pro-crypto voters are favoring the Republican Party thanks to Trump’s endorsement and support of the industry. If the Democrats align with Biden’s veto, they could lose further support from pro-crypto voters.
