US Congress Aims to Repeal Biden’s Veto on SEC Digital Asset Regulation

US lawmakers will vote next week on H.J. Res. 109, a bill to overturn the controversial SEC accounting bulletin—Staff Accounting Bulletin 121 (SAB 121). President Joe Biden vetoed the bill in May, reinforcing his administration’s commitment to strict financial regulations.

House Majority Leader Steve Scalise’s weekly schedule indicates that the resolution may be considered on Tuesday or Wednesday of next week.

Biden’s SAB 121 Veto Faces Potential Override

SAB 121 mandates that financial institutions list their customers’ digital assets on their balance sheets. Critics argue that this rule keeps digital assets outside the US financial system. The House and Senate approved the repeal of SAB 121 in May, but the President vetoed it.

Overturning Biden’s veto requires a two-thirds majority vote from the House and Senate. Alexander Grieve, head of government relations at venture capital firm Paradigm, noted that achieving this might be possible given the industry’s growing political awareness.

Read more: Crypto Regulation: What Are the Benefits and Drawbacks?

Crypto has become an important political topic in the current election cycle. Companies like Coinbase and Ripple are donating to the crypto-focused Super Political Action Committee (PAC) Fairshake. In a recent development, Multicoin Capital, a blockchain investment firm, plans to donate up to $1 million in Solana to support pro-crypto Republican lawmakers.

“Over the next 10 days, Multicoin Capital will match all SOL donations to Sentinel Action up to $1 milion in value. If you make a contribution in SOL during this period, we’ll double the impact of your contribution with our match,” Kyle Samani, managing partner at Multicoin Capital said.

Due to this, President Biden and former President Donald Trump are both courting crypto investors. Trump has garnered more industry stakeholders’ support due to his more favorable stance toward crypto. The former president had pledged to support the industry and end the Biden administration’s “war on crypto.”

Read more: How Can Blockchain Be Used for Voting in 2024?

Biden Election Drop Out. Source: Polymarket

On the other hand, President Bident has faced increasing questions about his ability to contest the November elections following a poor debate performance against Trump. Bettors on Polymarket believe there is a 62% chance he will drop out of the campaign despite his insistence to remain in the race.

“Let me say this as clearly as I can: I’m the sitting President of the United States. I’m the nominee of the Democratic party. I’m staying in the race,” Biden stated.