House to Challenge Biden’s Veto on Crypto Accounting Rule

• The US House is expected to vote for the SAB 121 resolution on Tuesday or Wednesday.
• While the House previously voted for the resolution, President Biden vetoed it.
• Alexander Grieve and Cody Carbone believe the House’s mission to overturn the veto would fail.

The U.S. House of Representatives is preparing for a second vote on a resolution to overturn a Securities and Exchange Commission rule requiring banks to list crypto assets on their balance sheets. This move comes after President Joe Biden vetoed the initial resolution in May.

The House is reportedly aiming to hold the vote as early as next week, according to a schedule released by Majority Leader Steve Scalise.

This follows an initial vote on May 8, 2024, when the House sought to overturn the Securities and Exchange Commission’s Staff Accounting Bulletin 121 (SAB 121), which mandates that publicly traded banks list digital assets on their balance sheets. Representative Mike Flood, a Republican who spearheaded the resolution, argued that SAB 121 disproportionately affects banks that aim to custody cryptocurrencies.

However, President Biden vetoed the resolution, stating that overturning the rule could bring financial instability and market uncertainty. Biden asserted:

“My Administration will not support measures that jeopardize the well-being of consumers and investors. Appropriate guardrails that protect consumers and investors are necessary to harness the potential benefits and opportunities of crypto-asset innovation.”

With the latest move, the House intends to overturn Biden’s veto. While overturning the veto requires a two-thirds majority from both houses of Congress, Alexander Grieve, Paradigm executive, said it is likely impossible.

Grieve’s skepticism is shared by other prominent figures in the crypto industry, who view overturning the veto as a long shot.

Sharing Grieve’s take on the matter was Cody Carbone, Vice President of Policy for the Chamber of Digital Commerce, who also believes that the mission will ultimately “fail” as it needs 60 more votes.