The Failed Attempt to Repeal SEC Staff Accounting Bulletin (SAB) 121
On July 11, 2024, the U.S. House of Representatives voted on the controversial legislation seeking to repeal SEC Staff Accounting Bulletin (SAB) 121. The vote, which fell short of the required two-thirds majority, failed to override U.S. President Joe Biden’s veto of HJRes. 109.
Not Reaching the Required Majority
With a vote of 228 to 184 in favor of overriding the veto, the House did not meet the threshold needed to repeal the president’s action. The inability to secure the necessary 290 votes means that SAB 121 remains in effect, affecting the regulation of cryptocurrency custody services in banks.
Lawmakers’ Message and Future Plans
Biden’s 12 vetoes since taking office in 2021 have not been overturned by the U.S. Congress due to the strict two-thirds majority requirement. Despite the unsuccessful attempt, Rep. Mike Flood emphasized that the vote sends a clear message of bipartisan support for repealing SAB 121.
Flood expressed his commitment to continue working with fellow lawmakers to find a pathway to end SAB 121. He highlighted the importance of allowing banks to provide custodial services for digital assets, aligning with their traditional role as trusted financial institutions.
In conclusion, the recent vote in the U.S. House of Representatives sheds light on the ongoing debate surrounding cryptocurrency regulation and the role of banks in providing custody services. The divide between Democrats and Republicans on this issue exemplifies the challenges of passing legislation in a politically polarized environment.