The U.S. House of Representatives will reconsider a bill to overturn an SEC directive that critics say hinders crypto firms from working with banks. Set for discussion on July 9 or later, the bill was previously vetoed by President Joe Biden in May.
SEC’s Staff Accounting Bulletin No. 121 (SAB 121), issued in March 2022, requires financial institutions to list crypto assets on their balance sheets, deterring banks from offering crypto custody services. House Majority Leader Steve Scalise and Whip Tom Emmer have criticized SAB 121 as illegal and against the SEC’s mission.
While the House and Senate initially passed the bill with bipartisan support, overriding Biden’s veto remains challenging. The crypto industry and its supporters await the outcome, which could shape the future of crypto custody services in the U.S.
This decision is crucial for the crypto industry, potentially impacting how banks manage crypto assets and influencing the broader regulatory landscape.
