Articles
NZD/USD trims gains below 0.6100 ahead of US PPI data
401875 July 12, 2024 07:14 FXStreet Market News
-
NZD/USD
trades
on
a
weaker
note
around
0.6090
in
Friday’s
early
Asian
session. -
Odds
of
Fed
rate
cuts
are
growing
after
the
softer-than-expected
June
US
CPI
inflation
report. -
The
RBNZ’s
dovish
monetary
policy
statement
undermines
the Kiwi against
the
USD.
The
NZD/USD
pair
trims
gains
near
0.6090
during
the
early
Asian
session
on
Friday.
The
pair
loses
traction
after
retreating
from
the
previous
session
high
of
nearly
0.6135.
Later
on
Friday,
investors
will
keep
an
eye
on
the
US
June
Producer
Price
Index
(PPI)
and
the
preliminary
Michigan
Consumer
Sentiment
gauge.
Data
released
by
the
US
Bureau
of
Labor
Statistics
(BLS)
on
Thursday
showed
that
the
US
Consumer
Price
Index
(CPI)
rose
3.0%
on
a
yearly
basis
in
June,
compared
to
a
rise
of
3.3%
in
May.
This
reading
came
in
below
the
market
consensus
of
3.1%.
Meanwhile,
the
annual
core
CPI,
which
excludes
volatile
food
and
energy
prices,
climbed
3.3%
YoY
in
June,
below
the
forecast
and
May’s
increase
of
3.4%.
On
a
monthly
basis,
the
CPI
declined
0.1%,
while
the
core
CPI
was
up
0.1%.
The
softer
US
inflation
data
has
triggered
the
expectation
that
the
US Federal
Reserve
(Fed)
would
lower
its
borrowing
costs
this
year,
which
might
weigh
on
the
US
Dollar
(USD)
in
the
near
term.
Investors
are
now
pricing
in
a
nearly
89%
chance
of
a
September
Fed
meeting
rate
cut,
from
73%
on
Wednesday
and
around
50%
a
week
ago,
according
to
CME
Group’s FedWatch
Tool.
On
the
other
hand,
a
less
hawkish
stance
of
the
Reserve
Bank
of
New
Zealand
(RBNZ)
is
likely
to
exert
some
selling
pressure
on
the
New
Zealand
Dollar
(NZD)
for
the
time
being.
The
central
bank
left
its
Official
Cash
Rate
(OCR)
unchanged
for
the
eighth
consecutive
meeting
at
5.5%
on
Wednesday,
as
expected but
hinted
at
possible
rate
cuts
in
August
if
inflation
decreases
as
expected.
New
Zealand
Dollar
FAQs
The
New
Zealand
Dollar
(NZD),
also
known
as
the
Kiwi,
is
a
well-known
traded
currency
among
investors.
Its
value
is
broadly
determined
by
the
health
of
the
New
Zealand
economy
and
the
country’s
central
bank
policy.
Still,
there
are
some
unique
particularities
that
also
can
make
NZD
move.
The
performance
of
the
Chinese
economy
tends
to
move
the
Kiwi
because
China
is
New
Zealand’s
biggest
trading
partner.
Bad
news
for
the
Chinese
economy
likely
means
less
New
Zealand
exports
to
the
country,
hitting
the
economy
and
thus
its
currency.
Another
factor
moving
NZD
is
dairy
prices
as
the
dairy
industry
is
New
Zealand’s
main
export.
High
dairy
prices
boost
export
income,
contributing
positively
to
the
economy
and
thus
to
the
NZD.
The
Reserve
Bank
of
New
Zealand
(RBNZ)
aims
to
achieve
and
maintain
an
inflation
rate
between
1%
and
3%
over
the
medium
term,
with
a
focus
to
keep
it
near
the
2%
mid-point.
To
this
end,
the
bank
sets
an
appropriate
level
of
interest
rates.
When
inflation
is
too
high,
the
RBNZ
will
increase
interest
rates
to
cool
the
economy,
but
the
move
will
also
make
bond
yields
higher,
increasing
investors’
appeal
to
invest
in
the
country
and
thus
boosting
NZD.
On
the
contrary,
lower
interest
rates
tend
to
weaken
NZD.
The
so-called
rate
differential,
or
how
rates
in
New
Zealand
are
or
are
expected
to
be
compared
to
the
ones
set
by
the
US
Federal
Reserve,
can
also
play
a
key
role
in
moving
the
NZD/USD
pair.
Macroeconomic
data
releases
in
New
Zealand
are
key
to
assess
the
state
of
the
economy
and
can
impact
the
New
Zealand
Dollar’s
(NZD)
valuation.
A
strong
economy,
based
on
high
economic
growth,
low
unemployment
and
high
confidence
is
good
for
NZD.
High
economic
growth
attracts
foreign
investment
and
may
encourage
the
Reserve
Bank
of
New
Zealand
to
increase
interest
rates,
if
this
economic
strength
comes
together
with
elevated
inflation.
Conversely,
if
economic
data
is
weak,
NZD
is
likely
to
depreciate.
The
New
Zealand
Dollar
(NZD)
tends
to
strengthen
during
risk-on
periods,
or
when
investors
perceive
that
broader
market
risks
are
low
and
are
optimistic
about
growth.
This
tends
to
lead
to
a
more
favorable
outlook
for
commodities
and
so-called
‘commodity
currencies’
such
as
the
Kiwi.
Conversely,
NZD
tends
to
weaken
at
times
of
market
turbulence
or
economic
uncertainty
as
investors
tend
to
sell
higher-risk
assets
and
flee
to
the
more-stable
safe
havens.
New Zealand Electronic Card Retail Sales (YoY): -4.9% (June) vs previous -1.6%
401874 July 12, 2024 07:14 FXStreet Market News
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on
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pages
contains
forward-looking
statements
that
involve
risks
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Markets
and
instruments
profiled
on
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are
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purposes
only
and
should
not
in
any
way
come
across
as
a
recommendation
to
buy
or
sell
in
these
assets.
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should
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research
before
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decisions.
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is
free
from
mistakes,
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not
guarantee
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timely
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involves
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great
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of
all
or
a
portion
of
your
investment,
as
well
as
emotional
distress.
All
risks,
losses
and
costs
associated
with
investing,
including
total
loss
of
principal,
are
your
responsibility.
The
views
and
opinions
expressed
in
this
article
are
those
of
the
authors
and
do
not
necessarily
reflect
the
official
policy
or
position
of
FXStreet
nor
its
advertisers.
The
author
will
not
be
held
responsible
for
information
that
is
found
at
the
end
of
links
posted
on
this
page.
If
not
otherwise
explicitly
mentioned
in
the
body
of
the
article,
at
the
time
of
writing,
the
author
has
no
position
in
any
stock
mentioned
in
this
article
and
no
business
relationship
with
any
company
mentioned.
The
author
has
not
received
compensation
for
writing
this
article,
other
than
from
FXStreet.
FXStreet
and
the
author
do
not
provide
personalized
recommendations.
The
author
makes
no
representations
as
to
the
accuracy,
completeness,
or
suitability
of
this
information.
FXStreet
and
the
author
will
not
be
liable
for
any
errors,
omissions
or
any
losses,
injuries
or
damages
arising
from
this
information
and
its
display
or
use.
Errors
and
omissions
excepted.
The
author
and
FXStreet
are
not
registered
investment
advisors
and
nothing
in
this
article
is
intended
to
be
investment
advice.
New Zealand Business NZ PMI fell from previous 47.2 to 41.1 in June
401872 July 12, 2024 06:39 FXStreet Market News
Information
on
these
pages
contains
forward-looking
statements
that
involve
risks
and
uncertainties.
Markets
and
instruments
profiled
on
this
page
are
for
informational
purposes
only
and
should
not
in
any
way
come
across
as
a
recommendation
to
buy
or
sell
in
these
assets.
You
should
do
your
own
thorough
research
before
making
any
investment
decisions.
FXStreet
does
not
in
any
way
guarantee
that
this
information
is
free
from
mistakes,
errors,
or
material
misstatements.
It
also
does
not
guarantee
that
this
information
is
of
a
timely
nature.
Investing
in
Open
Markets
involves
a
great
deal
of
risk,
including
the
loss
of
all
or
a
portion
of
your
investment,
as
well
as
emotional
distress.
All
risks,
losses
and
costs
associated
with
investing,
including
total
loss
of
principal,
are
your
responsibility.
The
views
and
opinions
expressed
in
this
article
are
those
of
the
authors
and
do
not
necessarily
reflect
the
official
policy
or
position
of
FXStreet
nor
its
advertisers.
The
author
will
not
be
held
responsible
for
information
that
is
found
at
the
end
of
links
posted
on
this
page.
If
not
otherwise
explicitly
mentioned
in
the
body
of
the
article,
at
the
time
of
writing,
the
author
has
no
position
in
any
stock
mentioned
in
this
article
and
no
business
relationship
with
any
company
mentioned.
The
author
has
not
received
compensation
for
writing
this
article,
other
than
from
FXStreet.
FXStreet
and
the
author
do
not
provide
personalized
recommendations.
The
author
makes
no
representations
as
to
the
accuracy,
completeness,
or
suitability
of
this
information.
FXStreet
and
the
author
will
not
be
liable
for
any
errors,
omissions
or
any
losses,
injuries
or
damages
arising
from
this
information
and
its
display
or
use.
Errors
and
omissions
excepted.
The
author
and
FXStreet
are
not
registered
investment
advisors
and
nothing
in
this
article
is
intended
to
be
investment
advice.
SEC vs. Coinbase: Coinbase attorney’s arguments fail to convince judge
401871 July 12, 2024 06:39 FXStreet Market News
-
SEC
vs.
Coinbase
hearing
on
Thursday
addresses
the
exchange’s
demand
that
Chair
Gary
Gensler
should
testify. -
Coinbase
Attorney
Kevin
Schwartz’s
arguments
fail
to
convince
Judge
Katherine
Polk
Failla. -
Judge
says
she
is
troubled
by
hearing
that
SEC
is
stonewalling,
asks
parties
to
work
together.
Judge
Katherine
Polk
Failla,
who
presided
over
the
Securities
&
Exchange
Commission
(SEC)
vs.
Coinbase
hearing
early
on
Thursday,
was
troubled
by
the
state
of
affairs
and
has
asked
the
parties
to
work
together.
While
Coinbase’s
attorney
argues
that
SEC
Chair
Gary
Gensler’s
statements
prior
to
being
sworn
into
office
are
relevant
to
the
case,
the
judge
found
the
argument
“less
helpful.”
SEC
closer
to
partial
win
in
lawsuit
against
Coinbase
SEC
alleged
that
Coinbase
and
its
holding
company
committed
securities
law
violations
by
failing
to
register
its
platform
as
an
exchange,
broker
and
clearing
agency.
The
financial
regulator
alleges
that
Coinbase
violated
Exchange
Act
Sections
5,
15(a),
and
17A(b).
In
a
hearing
early
on
Thursday
morning,
Judge
Katherine
Polk
Failla
listened
to
arguments
from
both
sides.
Judge
Failla
found
that
Coinbase
attorney
Kevin
Schwartz’s
arguments
were
not
convincing
and
felt
troubled
by
the
SEC’s
“stonewalling.”
The
Judge
asked
the
two
parties
to
work
together.
While
Coinbase
attempted
to
convince
the
court
that
SEC
Chair
Gary
Gensler’s
statements
prior
to
being
sworn
into
office
are
relevant
to
the
case,
the
judge
did
not
find
the
argument
convincing.
Reporter
Nikhilesh
De
is
covering
the
hearing
live
in
tweets
on
X.
Judge:
“I
do
have
quite
strong
views
about
the
utility
or
probative-ness
of
statements
made
by
Mr
Gensler
before
he
became
chair”I
actually
prefer
that
you
and
your
team
begin
with
a
motion
to
compel
rather
than
a
motion
to
quash,
she
said
to
Coinbase
atty
Kevin
Schwartz—
@[email protected]
(@nikhileshde)
July
11,
2024
The
SEC
is
closer
to
a
partial
victory
in
the
hearing
as
Coinbase
attorney
Kevin
Schwartz’s
arguments
failed
to
shed
light
on
the
relevance
of
Chair
Gary
Gensler’s
statements
on
crypto
prior
to
taking
office.
Full Article
NZD/JPY Price Analysis: Bears seize control, key 20-day SMA broken breached
401868 July 12, 2024 06:14 FXStreet Market News
-
NZD/JPY
ended
Thursday’s
session
with
a
significant
decline. -
The
bears
successfully
pushed
the
pair
below
the
crucial
20-day
SMA,
signaling
a
shift
in
command.
In
Thursday’s
trading
session,
the
NZD/JPY
pair
dropped
substantially,
losing
1.40%
to
land
at
96.80.
The
pair
slipped
below
the
20-day
Simple
Moving
Average
(SMA)
of
97.70,
indicating
a
negative
outlook
in
the
short-term
as
the
outlook
is
now
somewhat
bearish
at
least
for
the
short-term.
On
the
daily
chart,
the
Relative
Strength
Index
(RSI)
plummeted
to
44.
This
swift
shift
towards
negative
territory
suggests
a
decline
in
market
momentum,
and
it
is
important
to
note
that
the
RSI
shifted
from
nearly
overbought
terrain
to
below
the
middle
point.
The
Moving
Average
Convergence
Divergence
(MACD)
also
adds
weight
to
this
bearish
scenario,
registering
rising
red
bars
indicative
of
decreased
buying
momentum.
NZD/JPY
daily
chart
In
light
of
the
bearish
turn,
immediate
support
levels
are
now
set
at
96.50,
96.00,
and
further
down
to
95.00.
In
contrast,
resistance
is
now
likely
to
be
encountered
at
previous
support
levels
of
97.00,
97.70
(20-day
SMA),
and
98.00.
US Dollar under pressure as markets gain confidence of a sooner cut in September
401867 July 12, 2024 06:14 FXStreet Market News
-
US
Dollar
loses
momentum
on
decelerating
CPI
figures. -
Market
now
more
certain
of
September
cut. -
US
Treasury
yields
fall,
making
traders
lose
interest
in
USD.
The
US
Dollar
has
extended
its
losses
and
the
DXY
index
slips
further
on
Thursday,
mainly
due
to
the
decelerating
inflation
figures
from
the
US
Consumer
Price
Index
(CPI),
which
makes
an
even
better
case
for
a
September
interest
rate
cut
by
the
Federal
Reserve
(Fed).
Though
markets
are
getting
increasingly
confident
about
the
rate
cut,
Fed
officials
remain
cautious
and
have
indicated
that
they
are
not
in
a
hurry
to
implement
changes
without
studying
data-driven
indicators
thoroughly.
Daily
digest
market
movers:
DXY
under
stress
as
inflation
softens
and
markets
expect
a
rate
cut
-
Keeping
with
his
earlier
stance,
Fed
Chair
Powell
reiterated
that
the
Fed’s
job
is
not
yet
done
when
it
comes
to
managing
inflation
and
even
suggested
the
Fed
has
more
work
to
do. -
He
indicated
that
the
confidence
to
lower
rates
based
solely
on
inflation
is
not
sufficient
yet,
but
also
pointed
out
that
the
Fed
doesn’t
need
inflation
to
be
under
2%
before
rate
cuts
begin. -
On
the
data
front,
the
US
Consumer
Price
Index
(CPI)
for
June
reported
a
decline
to
3%
YoY
from
3.3%
in
May
as
per
the
US
Bureau
of
Labor
Statistics
(BLS),
below
the
market’s
expectations.
The
core
measure
rose
by
3.3%
YoY,
lower
than
the
3.4%
expected. -
Amid
continued
signs
of
inflation
softening,
market
participants’
confidence
in
a
potential
rate
cut
in
September
strengthens,
placing
downward
pressure
on
USD.
DXY
technical
outlook:
Negative
outlook
intensifies
as
DXY
loses
100-day
SMA
The
DXY
index
losing
its
10-day
Simple
Moving
Average
(SMA)
has
stirred
up
a
negative
outlook
for
the
USD
with
both
the
Relative
Strength
Index
(RSI)
and
the
Moving
Average
Convergence
Divergence
(MACD)
indicators
swinging
into
negative
trajectory.
The
100-day
SMA
threshold
has
been
breached,
intensifying
the
bearish
tone.
The
next
potential
backstop
for
further
declines
could
be
noted
at
the
200-day
SMA
level,
providing
a
critical
bottom
for
the
market.
Central
banks
FAQs
Central
Banks
have
a
key
mandate
which
is
making
sure
that
there
is
price
stability
in
a
country
or
region.
Economies
are
constantly
facing
inflation
or
deflation
when
prices
for
certain
goods
and
services
are
fluctuating.
Constant
rising
prices
for
the
same
goods
means
inflation,
constant
lowered
prices
for
the
same
goods
means
deflation.
It
is
the
task
of
the
central
bank
to
keep
the
demand
in
line
by
tweaking
its
policy
rate.
For
the
biggest
central
banks
like
the
US
Federal
Reserve
(Fed),
the
European
Central
Bank
(ECB)
or
the
Bank
of
England
(BoE),
the
mandate
is
to
keep
inflation
close
to
2%.
A
central
bank
has
one
important
tool
at
its
disposal
to
get
inflation
higher
or
lower,
and
that
is
by
tweaking
its
benchmark
policy
rate,
commonly
known
as
interest
rate.
On
pre-communicated
moments,
the
central
bank
will
issue
a
statement
with
its
policy
rate
and
provide
additional
reasoning
on
why
it
is
either
remaining
or
changing
(cutting
or
hiking)
it.
Local
banks
will
adjust
their
savings
and
lending
rates
accordingly,
which
in
turn
will
make
it
either
harder
or
easier
for
people
to
earn
on
their
savings
or
for
companies
to
take
out
loans
and
make
investments
in
their
businesses.
When
the
central
bank
hikes
interest
rates
substantially,
this
is
called
monetary
tightening.
When
it
is
cutting
its
benchmark
rate,
it
is
called
monetary
easing.
A
central
bank
is
often
politically
independent.
Members
of
the
central
bank
policy
board
are
passing
through
a
series
of
panels
and
hearings
before
being
appointed
to
a
policy
board
seat.
Each
member
in
that
board
often
has
a
certain
conviction
on
how
the
central
bank
should
control
inflation
and
the
subsequent
monetary
policy.
Members
that
want
a
very
loose
monetary
policy,
with
low
rates
and
cheap
lending,
to
boost
the
economy
substantially
while
being
content
to
see
inflation
slightly
above
2%,
are
called
‘doves’.
Members
that
rather
want
to
see
higher
rates
to
reward
savings
and
want
to
keep
a
lit
on
inflation
at
all
time
are
called
‘hawks’
and
will
not
rest
until
inflation
is
at
or
just
below
2%.
Normally,
there
is
a
chairman
or
president
who
leads
each
meeting,
needs
to
create
a
consensus
between
the
hawks
or
doves
and
has
his
or
her
final
say
when
it
would
come
down
to
a
vote
split
to
avoid
a
50-50
tie
on
whether
the
current
policy
should
be
adjusted.
The
chairman
will
deliver
speeches
which
often
can
be
followed
live,
where
the
current
monetary
stance
and
outlook
is
being
communicated.
A
central
bank
will
try
to
push
forward
its
monetary
policy
without
triggering
violent
swings
in
rates,
equities,
or
its
currency.
All
members
of
the
central
bank
will
channel
their
stance
toward
the
markets
in
advance
of
a
policy
meeting
event.
A
few
days
before
a
policy
meeting
takes
place
until
the
new
policy
has
been
communicated,
members
are
forbidden
to
talk
publicly.
This
is
called
the
blackout
period.
US Treasury yields plummet as inflation surprises, Fed dovish bets grow
401864 July 12, 2024 05:39 FXStreet Market News
-
US
10-year
Treasury
yield
drops
to
4.214%
following
unexpected
-0.1%
MoM
contraction
in
June
CPI. -
Core
CPI
increases
by
just
0.1%
MoM,
bolstering
predictions
for
Fed
rate
cuts
beginning
September
2024. -
Gold
exceeds
$2,400
and
Silver
ascends
past
$31.00
as
traders
forecast
49
bps
of
easing
by
December
2024.
US
Treasury
bond
yields
tanked
on
Thursday
after
the
US
Bureau
of
Labor
Statistics
(BLS)
revealed
a
surprise
fall
in
inflation
before
Wall
Street
opened.
This
reinforced
speculation
that
the
Federal
Reserve
could
start
lowering
interest
rates
in
2024,
and
according
to
data,
traders
target
September
as
the
first
cut.
US
CPI
drop
boosts
Gold
and
Silver
prices
amid
strengthening
rate
cut
bets
The
Consumer
Price
Index
(CPI)
for
June
contracted
by
-0.1%
Month
over
Month,
below
estimates
of
a
0.1%
increase.
Underlying
inflation,
as
measured
by
Core
CPI,
rose
by
0.1%
Month
over
Month,
also
beneath
the
consensus
and
May’s
data.
Annual
readings
were
also
lower,
as
CPI
fell
from
3.3%
to
3%,
while
core
inflation
dipped
from
3.4%
to
3.3%.
Other
data
showed
the
labor
market
remains
robust
as
Initial
Jobless
Claims
for
the
week
ending
July
6
came
in
better
than
expected
at
222K,
below
the
consensus
of
236K
and
the
previous
reading
of
239K.
This
highlights
the
labor
market’s
strength,
though
data
released
during
the
day
reaffirmed
a
Goldilocks
scenario.
After
the
data,
the
odds
of
a
September
Fed
rate
cut
have
increased
to
84%,
up
from
72%
on
Wednesday,
via
the
CME
FedWatch
Tool,
The
US
10-year
Treasury
bond
yield
plunged
seven
and
a
half
basis
points
to
4.214%,
though
it
hit
its
lowest
level
since
March
earlier
at
4.168%.
This
pushed
Gold
prices
above
$2,400
and
Silver
above
$31.00
a
troy
ounce,
each.
Data
from
the
Chicago
Board
of
Trade
(CBOT)
shows
that
traders
expect
49
basis
points
(bps)
of
easing,
according
to
December’s
2024
fed
funds
rate
futures
contract.
Fed
FAQs
Monetary
policy
in
the
US
is
shaped
by
the
Federal
Reserve
(Fed).
The
Fed
has
two
mandates:
to
achieve
price
stability
and
foster
full
employment.
Its
primary
tool
to
achieve
these
goals
is
by
adjusting
interest
rates.
When
prices
are
rising
too
quickly
and
inflation
is
above
the
Fed’s
2%
target,
it
raises
interest
rates,
increasing
borrowing
costs
throughout
the
economy.
This
results
in
a
stronger
US
Dollar
(USD)
as
it
makes
the
US
a
more
attractive
place
for
international
investors
to
park
their
money.
When
inflation
falls
below
2%
or
the
Unemployment
Rate
is
too
high,
the
Fed
may
lower
interest
rates
to
encourage
borrowing,
which
weighs
on
the
Greenback.
The
Federal
Reserve
(Fed)
holds
eight
policy
meetings
a
year,
where
the
Federal
Open
Market
Committee
(FOMC)
assesses
economic
conditions
and
makes
monetary
policy
decisions.
The
FOMC
is
attended
by
twelve
Fed
officials
–
the
seven
members
of
the
Board
of
Governors,
the
president
of
the
Federal
Reserve
Bank
of
New
York,
and
four
of
the
remaining
eleven
regional
Reserve
Bank
presidents,
who
serve
one-year
terms
on
a
rotating
basis.
In
extreme
situations,
the
Federal
Reserve
may
resort
to
a
policy
named
Quantitative
Easing
(QE).
QE
is
the
process
by
which
the
Fed
substantially
increases
the
flow
of
credit
in
a
stuck
financial
system.
It
is
a
non-standard
policy
measure
used
during
crises
or
when
inflation
is
extremely
low.
It
was
the
Fed’s
weapon
of
choice
during
the
Great
Financial
Crisis
in
2008.
It
involves
the
Fed
printing
more
Dollars
and
using
them
to
buy
high
grade
bonds
from
financial
institutions.
QE
usually
weakens
the
US
Dollar.
Quantitative
tightening
(QT)
is
the
reverse
process
of
QE,
whereby
the
Federal
Reserve
stops
buying
bonds
from
financial
institutions
and
does
not
reinvest
the
principal
from
the
bonds
it
holds
maturing,
to
purchase
new
bonds.
It
is
usually
positive
for
the
value
of
the
US
Dollar.
Biden’s veto stands, banks unable to provide custody services for crypto
401863 July 12, 2024 05:39 FXStreet Market News
-
US
House
failed
to
muster
a
two-thirds
vote
to
overturn
President
Biden’s
veto
of
Joint
Resolution
109. -
Several
Democrats
failed
to
support
a
repeal
of
the
President’s
veto
despite
the
increasing
role
of
the
crypto
industry
in
the
upcoming
election. -
Results
showed
that
228
Reps
voted
to
repeal
the
veto,
while
184
members
sided
with
it.
On
Thursday,
the
House
of
Representatives
failed
to
overturn
President
Joe
Biden’s
veto
of
bipartisan
SAB
121
repeal,
with
less
than
two-thirds
of
the
required
majority
voting
for
the
move.
SAB
121
holds
strong
as
House
failed
to
overturn
veto
The
House
of
Representatives
voted
today
on
the
potential
repeal
of
President
Biden’s
veto
of
Joint
Resolution
109,
which
saw
the
House
and
Senate
supporting
an
overturn
of
SAB
121.
Staff
Accounting
Bulletin
121
(SAB
121)
obligated
companies
to
record
digital
assets
they
custody
as
liabilities
on
their
balance
sheets,
effectively
preventing
banks
from
providing
digital
asset
custody
services
to
clients.
In
a
vote
that
comprised
433
Reps,
228,
including
207
Republicans
and
21
Democrats,
voted
in
favor
of
the
overturn.
On
the
opposing
side,
one
Republican
joined
183
Democrats
to
support
the
veto.
Twenty-one
votes
were
also
deemed
invalid.
As
a
result,
the
override
attempt
was
unsuccessful because
the
House
failed
to
meet
the
two-thirds
threshold.
This
implies
that
the
controversial
SAB
121
remains
in
effect,
as
the
President’s
veto
still
stands.
Several
Democrats
would
have
had
to
support
the
veto’s
repeal
for
it
to
go
into
effect.
However,
only
21
voted
to
overturn
the
repeal,
with
the
others
siding
with
the
President
despite
potential
support
from
crypto
industry
players
in
the
upcoming
November
elections.
Alexander
Grieve
shared
his
disappointment
with
the
results
of
the
vote
in
a
social
media
post
on
X:
“Disappointing
performance
from
House
Dems
here.
Doubtful
Biden
is
going
to
be
a
nominee
at
this
point
—
what
downside
do
you
have
in
voting
to
override
his
veto
of
a
popular,
commonsense
piece
of
legislation?”
Joint
Resolution
109
was
passed
in
May
following
bipartisan
support
from
the
House
and
Senate
for
SAB
121’s
repeal.
Following
the
vote
results,
House
Rep
Wiley
Nickel
commented
on
the
review
of
SAB
121.
Fox
Business
Eleanor
Terett
wrote
on
X:
“Congressman
Wiley
Nickel
is
calling
on
Gary
Gensler
to
immediately
withdraw
or
amend
SAB
121
and
tout
his
legislation
that
House
leaders
plan
to
use
as
a
plan
B
for
rescinding
SAB
121.”
The
results
suggest
that
the
crypto
industry
may
intensify
its
support
for
pro-crypto
candidates
in
the
November
elections.
Full Article