The US House of Representatives has failed to overturn President Joe Biden’s veto of a bill aimed at revoking the Securities and Exchange Commission’s (SEC) crypto accounting directive, Staff Accounting Bulletin 121 (SAB 121).
The vote fell short of the necessary two-thirds majority, with 228 representatives voting in favor of overturning the veto and 184 voting against it.
This outcome leaves SAB 121 in effect, requiring public companies, particularly banks, to record customers’ crypto assets on their balance sheets. This requirement aims to protect these assets from being caught in the bankruptcy processes of crypto firms but has been criticized for imposing stricter capital requirements on banks dealing with crypto.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe – We publish new crypto explainer videos every week!
Although SEC Chair Gary Gensler defended SAB 121 as a necessary response to turmoil within the crypto industry, the bill to overturn the bulletin initially garnered bipartisan support, with 21 Democrats siding with the majority of Republicans when it was first passed in May.
The crypto industry has strongly opposed SAB 121. Kristin Smith, CEO of the Blockchain Association, stated:
While we are disappointed that the resolution to override the president’s veto of the bipartisan SAB 121 Congressional Review Acrt did not achieve the required two-thirds majority for passage, the fight to stop this ill-conceived SEC rule will continue.
A Government Accountability Office review found that the SEC mishandled the policy by presenting it as guidance rather than a formal rule. Despite this, President Biden defended his veto, arguing that overturning SAB 121 would limit the SEC’s ability to implement necessary safeguards and address future challenges in the industry.
The failure to override Biden’s veto underscores the ongoing debate over the SEC’s crypto policy and its implications for the banking and crypto industries.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
