US House Likely to Overturn Biden’s SAB 121 Veto, Key Events This Week

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As a seasoned crypto investor with a keen interest in regulatory developments, I’m closely watching this week’s events unfold. The potential overturn of Biden’s veto on SAB 121 by the US House is a significant concern for many in our industry. While some view it as non-binding staff guidance, others fear it could hinder banks from offering crypto custodial services, which could negatively impact institutional adoption.

As a cryptocurrency market analyst, I’m excited to share that this week holds significant importance for the crypto industry, as investors anxiously await the approval of spot Ethereum Exchange Traded Funds (ETFs). Additionally, there are noteworthy regulatory updates on the horizon. Specifically, the US House recently voted to override President Biden’s veto on SAB 121.

Will US House Overturn Biden’s SAB 121?

As a researcher, I’d like to share that I anticipate the US House will hold a vote, either on Tuesday or Wednesday of this week, to override the veto on SAB 121. This legislation has sparked significant controversy over the past seven days, particularly within the crypto industry.

In the cryptocurrency community, there are concerns that the SEC’s bulletin could discourage banks from providing crypto custodial services due to the requirement for these firms to report their clients’ crypto holdings as liabilities on their financial statements. However, the SEC has clarified that SAB 121 is merely “non-binding staff guidance,” intended to improve transparency towards customers by enhancing disclosures.

In May, the Biden administration blocked the legislators’ attempt to revoke the SAB 121 laws. Yet, the U.S. House still has the power to reverse this action.

All Eyes on CPI and PPI Data

This week, I anticipate the publication of the Consumer Price Index (CPI) and Producer Price Index (PPI) figures for June in the United States. It’s expected that Federal Reserve Chair Jerome Powell will present his semi-annual monetary policy testimony to the House Financial Services Committee around this time. Currently, there is a 50% probability of a 25 basis point rate cut occurring by November this year based on current market predictions.

On Wednesday, the Senate Agriculture Committee’s Oversight of Digital Commodities is holding a hearing with CFTC Chairman Rostin Behnam. Additionally, Representative Ro Khanna is organizing a crypto roundtable for key Democrats and billionaire Mark Cuban to discuss their efforts to counteract Donald Trump’s stance on cryptocurrencies.

Ro Khanna is currently holding discussions with influential personalities in the crypto sector, as well as White House representatives and Democratic legislators.

As a researcher, I’ve discovered that on Thursday, there will be a Senate hearing in the afternoon for the confirmation of SEC Commissioner Caroline Crenshaw for another term and the nomination of Christy Goldsmith Romero, who currently serves as a commissioner at the Commodity Futures Trading Commission (CFTC), to become the new Chair of the Federal Deposit Insurance Corporation (FDIC).

Before the upcoming US Consumer Price Index (CPI) announcement, the overall crypto market has experienced a downturn. I, as an analyst, have observed Bitcoin dropping by approximately 5% on Sunday. The alterations in altcoin values have shown an even more pronounced decrease.

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2024-07-08 08:23