Biden’s veto stands, banks unable to  provide custody services for crypto

• 
  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.