In a major move for the cryptocurrency industry in the US, the US House is set to vote next week on controversial crypto legislation (SAB 121) related to the Securities and Exchange Commission (SEC). In May, US President Joe Biden vetoed Staff Accounting Bulletin 121, better known as SAB 121.

A weekly schedule highlighted that the resolution could be considered in the House on July 9 or 10. For lawmakers to override the president’s veto, a two-thirds majority vote in both houses of Congress is required.

The bill has passed both the US House and Senate. In May, the House voted 228 to 182 in favor of the measure. The Senate voted 60 to 38 in favor of the measure. Amid recent developments in the US, Biden’s veto has put Bitcoin and the cryptocurrency industry under the political and regulatory spotlight.

The proposed legislation seeks to repeal the SEC’s Staff Accounting Bulletin (SAB) No. 121, which sets forth restrictive guidelines for financial institutions regarding the custody of digital assets. The bill aims to reverse the SEC’s guidance on labeling crypto assets as liabilities on companies’ balance sheets.

It is worth remembering that, when justifying the measure in a letter sent to the House of Representatives, Biden highlighted that the withdrawal of the guidance would harm the regulator’s ability to implement safeguards and protect investors.

“SAB 121 reflects the considered views of the SEC’s technical staff regarding the accounting obligations of certain companies that protect crypto assets. By invoking the Congressional Review Act, this Republican-led resolution would unduly restrict the SEC’s ability to establish adequate safeguards and address future issues.”

This reversal of the SEC staff’s considered judgment risks undermining the SEC’s broader accounting practice authority. My Administration will not support measures that jeopardize the well-being of consumers and investors,” he wrote.

When analyzing the current scenario, some members assess that it will be difficult to override the presidential veto of the controversial crypto legislation SAB 121, from the US SEC.


The views and opinions expressed by the author, or any person mentioned in this article, are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.


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