Bonk (bonk) 
The U.S. House of Representatives recently failed to override President Biden’s veto of a bill aimed at ending SAB 121, a contentious SEC guidance. Despite a majority voting against the veto, the votes did not meet the required threshold to overturn it. The House vote stood at 228-184, falling short of the two-thirds majority needed.
A two-thirds majority from both houses of Congress was necessary to overturn the veto, requiring 67 out of 100 senators and 290 lawmakers in the House. In the House, 21 Democrats joined 207 Republicans in favor, while 183 Democrats and one Republican voted against. Congressman Drew Ferguson of Georgia was the lone Republican who voted against it.
Earlier this year, President Biden vetoed Congress’ bipartisan effort to annul the Security and Exchange Commission’s (SEC) policy known as Staff Accounting Bulletin 121 (SAB 121). This policy mandates that public companies provide transparency regarding the management and potential risks associated with protecting customers’ crypto assets. The regulation has sparked controversy due to its potential to complicate financial disclosures and operational challenges.
The bill addressed concerns about privacy and equity in financial dealings, emphasizing transparency and accountability among service providers. Though it initially passed with bipartisan support in both chambers, the Biden administration argued that overturning SAB 121 would undermine the SEC’s role in protecting investor interests and financial stability.
In May, the House voted 228-182 against the SEC’s crypto custody guidance, with 21 Democrats joining Republicans to pass legislation striking down SAB 121. The Senate approved the motion with 60 votes in favor and 38 against, as several Democrats sided with Republicans.
The ongoing debate over SAB 121 underscores the divide among U.S. policymakers regarding cryptocurrency regulation. Despite efforts by crypto advocates and some lawmakers to depict the regulation as harsh and constraining, today’s outcome highlights the slow pace of change to address industry concerns.
Supporters of the resolution criticized Biden’s veto as a missed opportunity to reform what they see as overly burdensome regulation. Opponents, however, argued for maintaining regulatory clarity and investor protection in an evolving digital economy.
The deadlock in Congress reflects broader uncertainty over the future regulatory landscape for cryptocurrencies amidst rapid technological advancements and financial innovation. For more updates on cryptocurrency and finance, stay tuned to Global Crypto News.
