US House Of Representatives Fail To Override Biden’s Veto On SEC Rule

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While a strong majority of the US House of Representatives voted against the veto of a SAB 121 resolution, the votes fell short of the required number to overturn it. The attempt was unsuccessful as the US lawmakers voted 228-184, which was short of the majority needed to override President Joe Biden’s veto. 

Attempts To Erase SAB 121

Earlier this year, Biden had vetoed the Congress’ bipartisan effort to erase the Security and Exchange Commission’s (SEC) policy known as Staff Accounting Bulletin 121 (SAB 121). The SAB 121 requires that public companies provide transparency regarding the management and potential risks associated with protecting customers’ crypto assets. However, it has drawn controversy over the past year over concerns in the crypto industry that it could prevent banks from safeguarding digital assets. 

The resolution to overturn the bulletin was introduced in February. Later, the full House voted 228-182 in favor of the measure to overturn the bulletin in May, with mostly Republicans signing on along with 21 Democrats joining Republicans to pass legislation striking SAB 121 down.

The motion was approved by the Senate, receiving 60 votes in favor and 38 against, as several Democrats sided with the Republicans. That resolution was then vetoed by President Biden.

A Two-Thirds Majority Could not Materialise

To overturn the veto, a two-thirds majority from both houses of Congress was required, which meant 67 out of 100 senators in the Senate and 290 lawmakers in the House. Notably, Twenty-one Democrats and 207 Republicans voted in favor, while 183 Democrats and one Republican voted against. The only Republican who voted against it was the Congressman Drew Ferguson of Georgia. However, after the vote, Rep. Ferguson’s office said that he filed an incorrect voting form to Speaker Mike Johnson while he intended to vote in the affirmative. 

“Industry Did’nt Like The Answer”

On Wednesday, House Financial Services Committee Ranking Democrat Maxine Waters of California was critical of overturning SAB 121 and said the crypto industry “didn’t like the answer they got.”

The ongoing debate over the SAB 121 shows how divided the US policymakers are over crypto. While some crypto advocates and lawmakers are attempting to portray the regulation as harsh and constraining, the outcome indicates how slow-moving changes are to relieve the industry concerns. 

The supporters of the resolution have criticized Biden’s veto as a missed opportunity to reform what was perceived as an overly burdensome regulation, while the opponents have argued for maintaining regulatory clarity and investor protection in an evolving digital economy.