Biden's veto stands, banks unable to provide custody services for crypto
- US House failed to muster a two-thirds vote to overturn President Biden's veto of Joint Resolution 109.
- Several Democrats failed to support a repeal of the President's veto despite the increasing role of the crypto industry in the upcoming election.
- Results showed that 228 Reps voted to repeal the veto, while 184 members sided with it.
On Thursday, the House of Representatives failed to overturn President Joe Biden's veto of bipartisan SAB 121 repeal, with less than two-thirds of the required majority voting for the move.
SAB 121 holds strong as House failed to overturn veto
The House of Representatives voted today on the potential repeal of President Biden's veto of Joint Resolution 109, which saw the House and Senate supporting an overturn of SAB 121.
Staff Accounting Bulletin 121 (SAB 121) obligated companies to record digital assets they custody as liabilities on their balance sheets, effectively preventing banks from providing digital asset custody services to clients.
In a vote that comprised 433 Reps, 228, including 207 Republicans and 21 Democrats, voted in favor of the overturn. On the opposing side, one Republican joined 183 Democrats to support the veto. Twenty-one votes were also deemed invalid.
As a result, the override attempt was unsuccessful because the House failed to meet the two-thirds threshold. This implies that the controversial SAB 121 remains in effect, as the President's veto still stands.
Several Democrats would have had to support the veto's repeal for it to go into effect. However, only 21 voted to overturn the repeal, with the others siding with the President despite potential support from crypto industry players in the upcoming November elections.
Alexander Grieve shared his disappointment with the results of the vote in a social media post on X:
"Disappointing performance from House Dems here. Doubtful Biden is going to be a nominee at this point — what downside do you have in voting to override his veto of a popular, commonsense piece of legislation?"
Joint Resolution 109 was passed in May following bipartisan support from the House and Senate for SAB 121's repeal.
Following the vote results, House Rep Wiley Nickel commented on the review of SAB 121.
Fox Business Eleanor Terett wrote on X:
"Congressman Wiley Nickel is calling on Gary Gensler to immediately withdraw or amend SAB 121 and tout his legislation that House leaders plan to use as a plan B for rescinding SAB 121."
The results suggest that the crypto industry may intensify its support for pro-crypto candidates in the November elections.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
