Democrats and Republicans Unite
On May 8th, 207 Republican and 21 Democrat House Representatives voted in favor of a resolution (H.J.Res.109) to overturn the SEC’s Staff Accounting Bulletin (SAB) 121. This bulletin requires crypto custodians to treat crypto assets as liabilities, which has hindered banks from holding them.
House Votes to Overrule SEC
The resolution passed with 228 votes in favor and 182 against. It now goes to the Senate for consideration. If approved, it would allow financial institutions to hold cryptocurrencies under reasonable requirements.
Bipartisan Support
Despite the bipartisan support in the House, Fox Business journalist Elizabeth Terret believes the bill is unlikely to pass the Senate or be signed by the President.
SEC Overreach
Critics like Patrick McHenry, Chairman of the Financial Services Committee, have accused the SEC of overreach with SAB 121. He called it “one of the most glaring examples of regulatory overreach” under SEC Chairman Gary Gensler.
Biden Opposes Resolution
The White House has expressed strong opposition to the resolution. President Biden believes it would disrupt the SEC’s efforts to protect investors and the financial system. He has threatened to veto the bill if it passes the Senate.
