Quick Takes:
- The failure to overturn the veto leaves SAB 121 in place, potentially cramping the style of banks eager to dip their toes into crypto.
- The support from both sides of the aisle highlights a shared interest in fostering a friendlier regulatory environment for crypto.
Yello Paradisers! In a twist that feels a bit like watching a soccer team miss a crucial penalty, the U.S. House of Representatives recently took a swing at overturning President Joe Biden’s veto concerning SEC’s Staff Accounting Bulletin (SAB) 121, but alas, they didn’t quite score. Let’s dive into the details of this political drama and its implications for the crypto world.
The Veto Dance: A Legislative Tango
On July 11, the House attempted to muscle through an override of Biden’s veto of H.J.Res. 109, which originally aimed to scrap the SEC rule requiring banks that custody crypto to list these holdings as liabilities on their balance sheets.
Despite the House’s enthusiastic vote of 228-184 in favor of the override, they stumbled on the legislative dance floor, missing the two-thirds majority needed to lead. In the numbers game, they needed a robust 290 to win this round.
The Political Choreography
This saga has all the hallmarks of a Capitol Hill ballet, where bipartisan efforts occasionally flirt with success but often fall short due to the high bar of a two-thirds majority. It’s like trying to organize a potluck dinner where everyone agrees on not bringing the same dish, it’s theoretically possible, but good luck with that!
Implications for the Crypto Custody Cha-Cha
With the veto standing firm, banks might find the dance of offering crypto custody services a bit more like stepping on toes rather than a smooth waltz. This rule could make them hesitant to embrace the role of crypto custodians, seeing it more as a financial hot potato than a golden ticket.
A Message, Nonetheless
Despite the setback, Representative Mike Flood insists that the vote has “sent a message.” It seems the House hasn’t given up on the idea of revising or rescinding SAB 121. Rep. Flood’s optimism reminds us a bit of someone who keeps throwing coins in a wishing well, hoping for a different outcome each time, but hey, persistence is key!
So, What Do You Think, Paradisers?
Do you see this legislative hiccup as just a minor stumble in the crypto regulation tango, or is it a sign of more complicated routines to come? How should banks and crypto enthusiasts choreograph their moves in light of these developments?
Slide into the comments with your thoughts and let’s keep our fingers crossed for smoother regulatory rhythms ahead! Stay agile, stay informed, and let’s dance through these regulatory reels together!
