House Fails to Override Biden Veto on Resolution to Repeal SAB 121

House Fails to Override Biden Veto on Resolution to Repeal SAB 121

The U.S. House of Representatives failed in their attempt to overturn President Joe Biden's veto of a resolution that sought to repeal a key accounting guideline for how financial firms handle cryptocurrency custody. President Biden vetoed the resolution, which aimed to overturn the Accounting Standards Update (SAB) 121, in December 2022. The House voted on the matter on March 8, 2023, but failed to reach the two-thirds majority threshold needed to override a presidential veto. As a result, the SEC's cryptocurrency accounting policy remains in place. The resolution's supporters argued that SAB 121 was overly burdensome and hindered the growth of the cryptocurrency industry. However, the SEC maintained that the guidance was necessary to protect investors and ensure the stability of the financial system. The outcome of the vote is a setback for the cryptocurrency industry, which has been pushing for a more favorable regulatory environment. The SEC's cryptocurrency accounting policy has been criticized for being too strict and stifling innovation. It remains to be seen whether the SEC will revisit its stance on cryptocurrency accounting in the future. However, for the time being, SAB 121 remains the governing standard for financial firms handling cryptocurrency custody.