The U.S. House of Representatives has voted to reject the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin No. 121 (SAB 121), a policy that requires banks holding customer digital tokens to include them on their balance sheets.
The move comes amidst concerns that the policy could deter banks from handling crypto customers and could hinder the adoption of the digital assets by institutional investors.
What is SAB 121?
SAB 121, issued in December 2022, requires banks holding customers’ digital tokens to do so on their own balance sheets. The policy was met with criticism from some in the crypto industry, who argued that it would increase costs for banks and make it more difficult for them to offer crypto services.
The House Vote
The House vote on the resolution to reject SAB 121 was largely along party lines, with 228 Republicans and 21 Democrats voting in favor, while 182 Democrats voted against.
Biden’s Veto Threat
President Joe Biden has threatened to veto the resolution if it reaches his desk. In a statement, the White House said that the resolution would “undermine the SEC’s efforts to protect investors and ensure the stability of the financial system.”
The Senate
The resolution now moves to the Senate, where it faces an uncertain future. If the Senate passes the resolution, it will then go to Biden’s desk for his signature or veto.
Implications for the Crypto Industry
The outcome of the Senate vote will have significant implications for the crypto industry. If the resolution is passed and signed into law, it would overturn SAB 121 and could lead to greater adoption of cryptocurrencies by banks and institutional investors.
Conclusion
The debate over the regulation of cryptocurrencies is likely to continue in the coming months and years. The outcome of the Senate vote on the resolution to reject SAB 121 will be closely watched by the crypto industry and could have a significant impact on the future of digital assets.
#Crypto #SEC #Regulation #SAB121