Congress Might Overrule Biden on Crypto Accounting Rule

The House of Representatives could vote this week to overturn President Biden’s veto of a bill that would scrap a controversial rule from the Securities and Exchange Commission (SEC). This rule, known as Staff Accounting Bulletin (SAB) 121, says that companies holding digital assets for their customers should list them as liabilities on their financial statements.

What’s the Big Deal?

The SEC argues that SAB 121 helps protect investors by providing clarity on how companies should account for crypto assets. However, the crypto industry and some lawmakers see it as an unnecessary burden that could stifle innovation.

Biden’s Stance

President Biden vetoed the bill in May, saying that removing the SEC’s guidance would weaken its ability to protect investors. He argued that the rule helps ensure consumer and investor safety.

Congressional Pushback

Despite the veto, the bill has strong support in Congress. It previously passed the House and Senate with comfortable margins. If two-thirds of both chambers vote to overturn the veto, the bill will become law.

What’s Next?

The House is scheduled to vote on the veto this week. If they vote to overturn it, the bill will go to the Senate for a final vote. The outcome of this vote could have a significant impact on how the crypto industry is regulated in the United States.