As a crypto investor with a few years of experience under my belt, I’m keeping a close eye on the developments regarding the House vote on the significant crypto legislation scheduled for July 10. The potential repeal of Staff Accounting Bulletin 121 (SAB 121) has garnered much attention due to its impact on the custody of Bitcoin and other digital assets by financial institutions.
On Wednesday, July 10, the US House of Representatives is set to hold a vote on major cryptocurrency legislation. The outcome of this vote could potentially override President Joe Biden’s previous veto of the Securities and Exchange Commission (SEC) decision to rescind Staff Accounting Bulletin 121 (SAB 121), which was vetoed by Biden in June. This legislation has attracted considerable attention due to its implications for the custody of Bitcoin and other digital assets by financial institutions.
In 2022, the Securities and Exchange Commission (SEC) introduced SAB 121, requiring banks to list their cryptocurrency holdings as liabilities on their balance sheets. This directive has sparked debate within the crypto industry, with some arguing that this accounting method creates unnecessary regulatory hurdles for banks and other financial institutions, potentially discouraging them from engaging in digital asset transactions.
D-Day For Crypto
As a researcher, I’ve found that the House adopted a resolution against SAB 121 in early May with a tally of 228 for and 182 against. This coalition included 21 Democratic representatives, and every single Republican present supported the motion. Despite this bipartisan support, President Biden exercised his veto power, triggering the need for a two-thirds majority in both the House and Senate to overturn his decision.
As a crypto investor, I’ve noticed the unique political landscape surrounding our industry, with Ron Hammond of the Blockchain Association bringing attention to the fact that “crypto has become a significant campaign issue.” He emphasized the bipartisan support we’ve seen in the past but also acknowledged the challenges ahead. In his words, “this push for regulation is an arduous climb as only 21 Democrats joined Republicans in May, falling far short of the 2/3 majority required.”
Perianne Boring from the Digital Chamber emphasized the importance of securing greater Democratic backing, as the House was set to vote on overriding the presidential veto of a bill regarding SAB 121 this week. This constitutionally mandated process necessitates a supermajority of two-thirds in the House to enact the override. Approximately 60 more Democratic representatives are needed to join our cause and put an end to SAB 121.
Other Ways
As a crypto investor following the latest developments in Washington D.C., I’ve learned that lawmakers have been exploring alternative strategies to overcome the veto on the legislation related to digital assets. According to Eleanor Terrett from Fox Business, a Democratic staffer informed her that they believe many Democrats will stick to their initial votes against the bill this week. However, they see a more promising route in overturning SAB 121 through HR 5741 – Uniform Treatment for Custodial Assets Act. This bipartisan bill, introduced by US Rep Mike Flood and co-sponsored by Reps French Hill, Wiley Nickel, and Ritchie Torres, aims to address the accounting treatment of digital assets in a unified manner.
As a crypto investor, I’ve been keeping an eye on the latest developments in the regulatory landscape. Recently, the House Appropriations Committee proposed an interesting move: they included a policy rider in their budget bill that aims to restrict the Securities and Exchange Commission (SEC) from using funds to implement SAB 121. This is another way of saying that the committee wants to limit the SEC’s ability to enforce this particular rule related to crypto custody. By taking this approach, they are attempting to modify the regulatory environment in a more favorable direction for the crypto industry.
At press time, Bitcoin traded at $57,371.
Read More
- BCH PREDICTION. BCH cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- USD PHP PREDICTION
- USD COP PREDICTION
- SOLAMA PREDICTION. SOLAMA cryptocurrency
- METIS PREDICTION. METIS cryptocurrency
- USD MYR PREDICTION
2024-07-09 10:41