The U.S. House of Representatives is preparing to hold a crucial vote on President Joe Biden’s decision to veto Staff Accounting Bulletin 121 (SAB 121), a controversial bill that has been the subject of much debate. Also known as the “may-be-considered bill,” Senate Bill 121 has been the subject of fierce debate within the crypto industry due to concerns that it could make it harder for banks to effectively safeguard digital assets.
What exactly is Senate Bill 121?
Under the proposed rule, known as SAB 121, companies that are required to report to the SEC and hold cryptocurrencies would be required to include those holdings on their balance sheets. This means that companies that hold cryptocurrencies would have to record their customers’ crypto holdings as liabilities on their balance sheets. Critics of the rule have expressed concerns that it could limit the ability of U.S. banks to manage large volumes of crypto exchange-listed products, potentially creating concentration risks.
Methods used for voting
The House is expected to fulfill its constitutional duty and vote on Senate Bill 121 next Tuesday or Wednesday. Overriding President Biden’s veto would require a two-thirds majority in both the House and Senate. In May, the measure was approved by the full House, 228-182, with a majority of Republicans and 21 Democrats supporting it. It’s important to note that this vote was favorable. The measure was also approved in the Senate, 60-38, with several Democrats, including Senate Majority Leader Chuck Schumer, voting in favor of the measure.
The importance of providing additional support
The House would need 290 senators to successfully override the veto, about 60 more than the 228 who initially voted in favor. Democrats are essential to provide additional support this time around, given that the previous vote was a bipartisan one. Given that the previous vote was a bipartisan one, Alexander Grieve, head of government affairs at venture capital firm Paradigm, thinks getting the two-thirds vote is a tall order, but not impossible.
conclusion
The imminent vote in the U.S. House of Representatives on SAB 121 is seen as a major milestone for the crypto sector. The outcome of the vote will determine whether the controversial rule requiring SEC reporting companies to disclose their Bitcoin holdings on their balance sheets will be upheld or overturned. Given that a two-thirds majority vote is required, additional Democratic support will be the most important factor in determining the outcome of Senate Bill 121.
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