2024

Cryptocurrency

Rule

<p>The U.S. Congress and the White House are embroiled in a contentious battle over the Securities and Exchange Commission’s (SEC) rule on cryptocurrency asset accounting, with recent developments showcasing the deep divide between legislative and executive powers.</p>
<h2 class="wp-block-heading" id="h-may-8-2024-house-resolution">May 8, 2024 – House Resolution:</h2>
<p>On May 8, 2024, House lawmakers voted to <a href="https://www.unlock-bc.com/122837/sec-digital-asset-custody-rules-defeated-house-vote/" class="ek-link" rel="noopener noreferrer nofollow">nullify </a>the SEC’s Staff Accounting Bulletin 121 (SAB 121), sparking intense debate over the regulation of digital asset custody. SAB 121, requiring custodians to treat digital assets as liabilities on financial statements, drew criticism from both cryptocurrency firms and major banks. Led by Representatives Mike Flood and Wiley Nickel, the House resolution contested the SEC’s authority to establish such rules without proper public input. Despite opposition, SEC Chair Gary Gensler maintained support for SAB 121, citing its classification as a rule subject to oversight under the Congressional Review Act.</p>
<h2 class="wp-block-heading" id="h-may-16-2024-senate-decision">May 16, 2024 – Senate Decision:</h2>
<p>The clash escalated on May 16, 2024, as the U.S. Senate passed a measure to overturn SAB 121, marking a significant victory for opponents of the SEC rule. The measure, passed by a vote of 60 to 38, now heads to President Joe Biden’s desk, where it is expected to face a veto. Despite bipartisan support, the vote margin falls short of the threshold needed to override a presidential veto. The White House has signaled its intent to veto the measure, citing concerns about financial instability and market uncertainty if the SEC’s regulatory authority is curtailed.</p>
<h2 class="wp-block-heading" id="h-conclusion">Conclusion:</h2>
<p>As the legislative and executive branches clash over SAB 121, the outcome will have far-reaching implications for cryptocurrency regulation and the broader financial landscape. The standoff highlights fundamental disagreements over the appropriate balance between regulatory oversight and innovation in the rapidly evolving realm of digital assets. As stakeholders await the president’s decision, the future trajectory of cryptocurrency custody regulation hangs in the balance, shaping the dynamics of the market and influencing investor confidence in the burgeoning cryptocurrency sector.</p>
<p>The post <a href="https://www.unlock-bc.com/123268/sec-sab-121-congressional-battle-potential-presidential-veto/" rel="noopener noreferrer nofollow">Presidential Veto Looms as U.S. Congress Battles Over SEC’s Cryptocurrency Custody Rule</a> appeared first on <a href="https://www.unlock-bc.com" rel="noopener noreferrer nofollow">UNLOCK Blockchain</a>.</p>

Presidential Veto Looms as U.S. Congress Battles Over SEC’s Cryptocurrency Custody Rule

Table of Contents

UNLOCK_ENG

Other articles published on May 17, 2024

Bitcoin Exchange OKX Announced That It Invested in This Project in the Scroll Ecosystem! Here are...

Istanbul Blockchain Week 2024 Returns Showcasing Turkey as the Rising Star in Web3 Adoption

Best Crypto to Buy Now May 17 – Avalanche, Cardano, Sui

Crypto Biz: Galaxy, CoinShares Q1 results, ETFs on the blockchain, and more

Bullish VET Price Predictions Emerge as VeChain Energy Consumption of 0.04% Revealed, Will VET Hi...

Mintlayer and Salus Team Up to Advance Bitcoin with ZK Rollup Technology

Join our free newsletter for daily crypto updates!