The U.S. House of Representatives fell short in its attempt to override President Joe Biden’s veto of a bill aimed at ending Staff Accounting Bulletin 121 (SAB 121), a contentious SEC directive.
House Vote Falls Short
Despite a majority vote against the veto, the House did not achieve the necessary two-thirds majority. Lawmakers voted 228-184, falling short of the threshold required to overturn the presidential veto. To successfully override, a two-thirds majority in both houses of Congress is necessary—67 out of 100 senators and 290 of 435 House members. On Thursday, the House vote fell short, with 21 Democrats and 207 Republicans voting in favor, while 183 Democrats and one Republican opposed the override. Congressman Drew Ferguson of Georgia was the sole Republican voting against it.
Controversy Over SAB 121
Earlier this year, President Biden vetoed Congress’ bipartisan initiative to repeal SAB 121. This SEC policy requires public companies to disclose the management and potential risks associated with safeguarding customers’ crypto assets, sparking controversy due to its potential to complicate financial disclosures and operational procedures.
Debate Among Lawmakers
Proponents of the bill argue that SAB 121 poses privacy and equity issues in financial dealings and stresses the need for transparency and accountability among service providers. The Biden administration, however, contends that overturning SAB 121 would weaken the SEC’s ability to protect investor interests and ensure financial stability.
Today's vote in the House to override the President's veto of the SAB 121 CRA demonstrated bipartisan support, but ultimately fell short of the required 2/3 majority.
The following statement is attributed to @BlockchainAssn CEO @KMSmithDC: pic.twitter.com/NSPOni57Sd
— Blockchain Association (@BlockchainAssn) July 11, 2024
Bipartisan Support and Opposition
In May, the House initially voted 228-182 to strike down the SEC’s crypto custody guidance, with 21 Democrats joining Republicans. The Senate subsequently approved the motion with a 60-38 vote, showcasing bipartisan support.
Future of Cryptocurrency Regulation
The ongoing debate over SAB 121 underscores the division among U.S. policymakers on cryptocurrency regulation. While advocates for the resolution view Biden’s veto as a missed opportunity to reform burdensome regulations, opponents emphasize the importance of regulatory clarity and investor protection in the evolving digital economy. The deadlock highlights the broader uncertainty over the future regulatory landscape for cryptocurrencies amid rapid technological and financial innovation.
