Biden's Veto Fails to Be Overridden, SEC Offers New Path

Bittime - Biden's veto of repeal of SAB 121 failed to be overridden by the House. Despite the SEC's efforts to be more flexible, controversial accounting guidelines remain in place, affecting banks' ability to provide secure crypto custody services.

Biden's Veto Fails to Be Overridden

Large banks are inefficient at providing crypto custody services because Securities and Exchange Commission accounting Bulletin 121 (SAB 121) requires companies, including banks, to hold crypto assets as liabilities on their balance sheets.

To rescind these guidelines, created by the Biden administration in May, the Senate and House passed a bipartisan Congressional Review Act (CRA) resolution. However, according to an American Banker report, the vote to override the veto failed to gain the required two-thirds majority, with the result being 228–184.

Contents of the American Bankers Association Letter

This week, the American Bankers Association, Bank Policy Institute, Financial Services Forum, and Securities Industry and Financial Markets Association sent a letter to the House saying:

“SAB 121 threatens the industry's ability to provide safe and sound digital asset custody to its customers, as it represents a major change from the long-standing accounting treatment for custodial assets.”

SEC Offers New Path

Now, the SEC considers its initial guidance encouraging companies to address the security and legal risks associated with crypto ownership to have achieved its goal. With this new, more flexible perspective, more banks and businesses can offer crypto custody services, expanding the choices of American crypto holders. However, after a failed attempt to override Biden's veto in the House this week, SAB 121 remains in effect despite the SEC changes. 

Conclusion

Although the Congressional Review Act (CRA) produced consensus, the SEC's efforts to overturn accounting guidance Bulletin 121 (SAB 121) were unsuccessful. President Biden retained a veto as the vote in the House fell short of the required two-thirds majority, with the result being 228–184. Many groups in the financial industry criticized SAB 121, which requires banks and other companies to hold crypto assets on their balance sheets. They claim that these regulations harm the industry's ability to provide healthy and secure digital asset custody services.

While the initial guidelines still apply, the SEC has broken new ground by using more flexible methods, allowing more banks and companies to offer crypto custody services. This new perspective provides hope for the advancement of asset storage services.

How To Buy Crypto With Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.