House Passes Bill 228-182 to Repeal SEC's Crypto Rule, 21 Dems Support Despite Biden Veto

May 8, 2024, 11:17 PM

The U.S. House of Representatives has passed H.J. Res. 109, a resolution introduced by Rep. Mike Flood aimed at repealing the SEC's Staff Accounting Bulletin 121 (SAB 121). The resolution, which seeks to nullify SEC guidance that requires firms to record customer crypto holdings as liabilities on their balance sheets, passed with a vote of 228-182, including support from 21 Democrats. This bipartisan support highlights significant opposition to the SEC's rule, which many argue overreaches and violates the SEC's statutory mission by preventing banks from serving as custodians for consumers' crypto assets. Despite the House's approval, President Biden has issued a Statement of Administration Policy indicating he would veto the measure, citing concerns over investor protection and market stability. This veto threat was issued on the same day as the House debate.