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12/07/24
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U.S. House of Representatives Could Not Get Enough Support to Override Biden’s veto on Crypto Rule
The move to override President Joe Biden’s veto of a resolution that would disapprove of the SEC’s Staff Accounting Bulletin No. 121 (SAB 121) by the House of Representatives has failed.
Representatives were unable to get sufficient support to override it on July 11 as 228 House members voted but was 60 votes short of the two-thirds majority required. This means the president’s veto remains unchanged and banks across the country would not be allowed to serve as cryptocurrency custodians for their customers.
On July 10, Congressman Patrick McHenry expressed himself about the resolution, noting that “it did not have to be this way”. “On digital assets, on the regulation of digital assets, on the functioning of a new asset class that a substantial number of Americans and the world are using. […] The Biden administration has been given every opportunity to work with this Congress on digital asset policy and to come to a reasonable resolution on digital asset policy.”
“The crypto industry and its allies have long chided the SEC for not providing enough clarity for how crypto assets should be regulated. It’s just that the industry didn’t like the answer they got,” said Representative Maxine Waters. President Joe Biden revealed his plan to veto the bill if it gets to his table, to ensure that those who invest in the crypto space are protected as well as to safeguard the broader financial system.
After vetoing it, Biden said his administration will not support whatever measures will have a negative impact on consumers and investors, as necessary guardrails are required to ensure their protection and utilize the opportunities provided by cryptocurrency innovation. Participants within the crypto space have been criticizing the administration’s decision to veto the guidance.
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