House overturns SEC’s anti-crypto guidance, but Biden wants to veto
Republican Party Representative Mike Flood — who introduced the resolution — said SAB 121 was unfair for banks looking to custody crypto, as custodial assets are “always considered off-balance sheet.”
The United States House of Representatives has voted to pass a bill overturning controversial Securities and Exchange Commission (SEC) guidance preventing banks from owning crypto.
The House voted to pass a bipartisan bill titled H.J. Res 109, overturning the SEC’s Special Accounting Bulletin 121 (SAB 121) requiring banks to hold their customers’ crypto assets on their balance sheets, which is not the case for traditional assets such as securities.
Republican Party Representative Mike Flood — who introduced the resolution — said SAB 121 was unfair for banks looking to custody crypto, as custodial assets are “always considered off-balance sheet.”
However, before the vote, U.S. President Joe Biden’s office issued a statement informing lawmakers and the public that his administration plans to veto a joint resolution affecting crypto policy at the SEC if it comes to his desk.
The White House said it “strongly opposes” members of the House of Representatives seeking to pass a joint resolution it claims would disrupt the SEC’s efforts “to protect investors in crypto-asset markets and to safeguard the broader financial system.”
