Representative Patrick McHenry, Chairman of the House Financial Services Committee, urged overturning President Biden’s veto of a resolution against the SEC’s Staff Accounting Bulletin No. 121 (SAB 121). This happened during a recent House session debating H. J. Res. 109.
The resolution, which addresses regulations on banks’ digital asset custody, had previously seen strong bipartisan support in both the House and Senate. McHenry emphasized the need to revise U.S. policy on digital assets, criticizing the administration for siding with bureaucrats over the American people.
McHenry highlighted that the Financial Innovation and Technology (FIT) for the 21st Century Act had also garnered bipartisan approval. This act included provisions for digital asset market structures and was supported by 71 members of Biden’s party.
Rep. Mike Flood argued against SAB 121, stating the SEC was overreaching. He noted that the rule disrupts conventional bank custody frameworks and should be handled by bodies like the Federal Reserve and the Treasury Department.
This movement indicates a coordinated legislative effort to change the SEC’s approach to digital asset regulation. The strategic importance lies in potentially reshaping financial regulation to better support innovation and consumer choice.
