US House of Representatives to Vote on Controversial SAB 121 Bill

The
House
of
Representatives
of
the
United
States
of
America
is
getting
ready
to
hold
a
vote
that
will
be
extremely
important
regarding
President
Joe
Biden’s
decision
to
veto
Staff
Accounting
Bulletin
121
(SAB
121),
which
has
been
the
subject
of
a
great
deal
of
controversy.
The
Senate
Bill
121,
which
is
also
referred
to
as
the “legislation
that
may
be
considered,”
has
been
the
subject
of
a
heated
debate
within
the
cryptocurrency
industry
due
to
the
fact
that
there
are
concerns
that
it
could
make
it
more
difficult
for
banks
to
effectively
protect
digital
assets.

What
exactly
is
Senate
Bill
121?

In
accordance
with
the
proposed
rule
known
as
SAB
121,
entities
that
are
required
to
report
to
the
SEC
and
hold
cryptocurrency
would
be
required
to
include
those
holdings
on
their
balance
sheets.
The
implication
of
this
is
that
businesses
that
custody
cryptocurrency
would
be
required
to
record
the
cryptocurrency
holdings
of
their
customers
as
liabilities
on
their
balance
sheets.
Concerns
have
been
raised
by
critics
of
the
rule,
who
argue
that
it
could
restrict
the
capacity
of
American
banks
to
manage
cryptocurrency
exchange-traded
products
on
a
large
scale,
which
could
potentially
result
in
a
concentration
risk.

The
Methods
Used
in
Voting

It
is
anticipated
that
the
House
of
Representatives
will
carry
out
its
constitutional
obligation
and
vote
on
Senate
Bill
121
either
on
Tuesday
or
Wednesday
of
the
following
week.
To
override
the
veto
that
was
issued
by
President
Biden,
a
majority
vote
of
two-thirds
is
required
from
both
the
House
of
Representatives
and
the
Senate.
In
May,
the
measure
was
approved
by
the
full
House
with
a
vote
of
228-182,
with
support
coming
from
a
majority
of
Republicans
and
21
Democrats.
It
is
important
to
note
that
this
vote
was
favorable.
In
addition,
the
measure
was
approved
by
the
Senate
via
a
vote
of
sixty
to
thirty-eight,
with
a
number
of
Democrats,
including
Senate
Majority
Leader
Chuck
Schumer,
voting
in
favor
of
the
measure.

The
Importance
of
Providing
Additional
Assistance
at

In
order
for
the
House
of
Representatives
to
successfully
override
the
veto,
it
would
require
290
members
to
vote
in
favor
of
doing
so,
which
is
approximately
60
more
votes
than
the
initial
228
members
who
voted
in
favor
of
doing
so.
Due
to
the
fact
that
the
previous
vote
did
not
achieve
the
required
two-thirds
majority,
it
is
essential
that
Democrats
provide
additional
support
this
time
around.
In
light
of
the
fact
that
the
previous
vote
was
conducted
in
a
bipartisan
manner,
Alexander
Grieve,
who
is
the
head
of
government
affairs
at
the
venture
capital
firm
Paradigm,
is
of
the
opinion
that
obtaining
a
two-thirds
vote
is
a
difficult
task
to
accomplish,
but
it
is
not
impossible.

Conclusion

The
imminent
vote
in
the
US
House
of
Representatives
on
SAB
121
is
considered
to
be
a
major
milestone
for
the
crypto
sector.
The
result
of
the
vote
will
decide
whether
the
contentious
regulation
mandating
SEC-reporting
firms
to
show
bitcoin
holdings
on
their
balance
sheets
will
be
upheld
or
reversed.
Due
to
the
fact
that
a
majority
vote
of
two-thirds
is
required,
the
support
of
additional
Democrats
will
be
the
most
important
factor
in
determining
the
outcome
of
Senate
Bill
121.

Image
source:
Shutterstock