Biden to Veto H.J. Res 109, Upholding Crypto Custody Rule SAB 121

May 8, 2024, 06:27 PM

President Joe Biden has expressed his intention to veto H.J. Res 109, a resolution aimed at nullifying the SEC's Staff Accounting Bulletin (SAB) 121, which prohibits trusted custodians from managing digital assets and mandates that firms holding cryptocurrencies for customers must record these holdings as liabilities on their balance sheets. The White House issued a Statement of Administration Policy reinforcing Biden's position on the same day the House of Representatives debated the resolution. The policy statement and Biden's stance suggest a significant impact on how crypto custody is managed by financial institutions, potentially affecting the costs and availability of these services, and could expand crypto custody options while lowering costs.