Biden SAB 121 For Crypto Custodial Standard Will Be Excluded On Next Days

Key Points:

• The U.S. House of Representatives is set to vote on overturning Biden SAB 121, impacting how companies report digital assets.
• President Biden vetoed the repeal bill with concerns over financial stability and SEC regulatory oversight in the crypto sector.

The U.S. House of Representatives is poised for a crucial vote this week on whether to overturn the SEC’s Staff Accounting Bulletin (SAB) 121, a guidance affecting how public companies report digital assets on their financial statements.

House Vote on Biden SAB 121

Eleanor Terrett, reporting for Fox Business, indicated that the vote, requiring a two-thirds majority, is scheduled for Tuesday or Wednesday.

Terrett highlighted the significance of Biden SAB 121 in the digital asset custody landscape, citing concerns from VanEck about its impact on market dynamics. VanEck’s recent filing underscored potential risks associated with major custodians like Coinbase, whose Ethereum custody services for competing exchanges could influence trust fund operations and share values.

The measure to Biden SAB 121 gained traction earlier, passing the House with a 228-182 vote, largely supported by Republicans and some Democrats. A subsequent Senate vote of 60-38 further advanced the repeal effort, with notable Democratic support including Senate Majority Leader Chuck Schumer.

Industry Stakeholders Await Congressional Decision on Crypto Regulation

President Joe Biden‘s veto of the repeal bill, citing concerns over financial stability and market uncertainty, has set the stage for a contentious legislative showdown. The White House expressed reservations about limiting the SEC’s regulatory oversight in the crypto sector, arguing for the importance of a robust financial regulatory framework.

Critics of Biden SAB 121 argue that its guidelines hinder broader institutional participation in digital asset custody, potentially curtailing market innovation. Proponents, however, assert that it ensures transparency and investor protection in an evolving financial landscape.