US House Expected to Uphold Biden’s Veto On SAB 121

While there were reports earlier this week that the US House could vote to overturn Biden’s veto on SAS 121 regulatory oversight, there seems to be a 180-degree shift just ahead of the voting day on Wednesday, July 10.

The Biden administration is reportedly on the verge of securing an important victory on the crypto crackdown by preserving the SEC accounting rule SAB 121 which largely prohibits the banks from keeping custody of digital assets.

SAB 121 – A Roadblock to Crypto Innovation?

Earlier this year in May 2024, the US House representatives voted in favor of repealing the SAB 121 accounting rule in a vote to remove the friction for traditional banking institutions to offers crypto custodial services. Within a week, the Biden administration used its veto in order to uphold the SAB 121 regulations and preserve the SEC’s authority in accounting rule.

Sources familiar with the matter told Fox Business that the resolution to repeal the SAB 121 wouldn’t get enough votes for a two-thirds majority in the House and thereby overturn Biden’s veto. Nearly 60 members of the House would need to change their votes to go against Biden, a scenario which would be very unlikely.

Crypto enthusiasts will be closely watching the voting on Wednesday, to see whether Democrats support what they see as an anti-crypto position. If the Biden administration continues to hold the veto on SAB 121 repeal, it could send a negative signal across the crypto market thereby pouring cold water on Democrat’s recent attempt towards taking a crypto-friendly approach.

Also Read: House Gears Up for Crucial Vote on Biden’s Veto of SAB 121 Crypto Rule

Crypto Regulations Take Centerstage

With GOP Presidential Candidate Donald Trump making a strong push for crypto, the issue of crypto regulations has taken centerstage ahead of the 2024 US Elections.

The Republican National Committee, aligning with Trump’s stance, has recently included cryptocurrency issues in its 2024 platform, pledging to “end Democrats’ unlawful and un-American crackdown on crypto.”

Sources familiar with the matter said that the Democrats aren’t willing to show President Biden in a bad light, especially after the recent infighting in the party following the poor show in the first Presidential debate. An anonymous House staffer told Fox Business:

“There are so many Democrats piling on Biden already and a lot of members don’t want to add to that. I think if the veto were to get overturned right now, then Biden is toast”.

Also Read: Ripple CLO Slams US Authority Over Crypto Regulation Approach

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