As an analyst with a background in financial regulation and experience following the crypto market, I believe that the ongoing battle over SAB 121 regulations is a significant development for the future of digital asset custody in the US. The potential repeal of the rule was seen as a victory for the crypto industry, but recent reports suggest that the Biden administration will preserve the regulation, which could send a negative signal to the market.
It was previously anticipated that the US House would hold a vote this week to override President Biden’s veto on SAS 121 regulatory oversight. However, there appears to be a significant change of direction right before the scheduled vote on July 10, Wednesday.
According to reports, the Biden administration is close to achieving a significant win in its efforts to regulate cryptocurrencies by maintaining the Securities and Exchange Commission (SEC) accounting rule known as SAB 121. This rule generally prevents banks from holding digital assets on their behalf.
SAB 121 – A Roadblock to Crypto Innovation?
In May 2024, US House reps attempted to overturn the SAB 121 accounting rule by voting for its repeal. This move aimed to ease the way for traditional banks to provide crypto custodial services. However, within a week, the Biden administration exercised its veto power to maintain the existing SAB 121 regulations and uphold the SEC’s authority over accounting rules.
According to insider reports to Fox Business, the House lacks the necessary two-thirds majority to override President Biden’s veto on repealing SAB 121. Approximately 60 House members would need to switch their votes for this to happen, a highly improbable outcome.
Crypto supporters are keeping a keen eye on the upcoming vote on Wednesday. If Democrats reject the proposed repeal of SAB 121, this decision could be perceived negatively in the crypto sphere and potentially dampen their recent efforts to appear friendly towards cryptocurrencies. The Biden administration’s continued opposition to the SAB 121 repeal may send a chilling message to the crypto market.
Crypto Regulations Take Centerstage
As a researcher studying the political landscape leading up to the 2024 US elections, I can’t help but notice the heightened importance of cryptocurrency regulations following GOP Presidential Candidate Donald Trump’s vocal support for this digital asset class. The spotlight on crypto regulation is undeniably growing, making it an essential topic for further investigation.
The Republican National Committee has adopted my perspective on cryptocurrencies in its 2024 platform. We aim to put an end to the Democratic Party’s alleged illegal and un-American efforts to suppress the use of crypto.
Insiders close to the situation have shared that the Democrats are reluctant to portray President Biden unfavorably, given the party’s recent discord following a subpar performance in the initial presidential debate. An unidentified House staffer conveyed this information to Fox Business.
“A large number of Democrats are criticizing President Biden at the moment, and many are hesitant to join in. If the veto were to be overturned currently, I believe Biden’s presidency would be in jeopardy.”
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2024-07-10 07:46