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House Gears Up for Crucial Vote on Biden’s Veto of SAB 121 Crypto Rule

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7 months ago

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The U.S. House will vote next week to overturn President Joe Biden’s veto of Staff Accounting Bulletin 121, also known as SAB 121. The bulletin has stirred controversy in the crypto industry. It mandates that firms custodying crypto record customer holdings as liabilities.

House Majority Leader Steve Scalise indicated the vote might occur on Tuesday or Wednesday. Following the veto, the vote is a constitutional obligation. The measure previously passed the House with a 228-182 vote.

Bipartisan Push to Overturn SAB 121 Veto

SAB 121 requires firms holding crypto assets for customers to list these as liabilities. This rule has raised concerns among banks and the crypto industry. They argue it could hinder their ability to safeguard digital assets.

The resolution to overturn SAB 121 has seen bipartisan support. In May, the Senate passed it with a 60-38 vote, including support from Senate Majority Leader Chuck Schumer. However, overturning a veto requires a two-thirds majority in the House and Senate.

From venture capital firm Paradigm, Alexander Grieve noted the challenge but saw potential. “Remember when Biden vetoed the SAB121 rollback? It’s back on the House floor next week.” He pointed out the previous bipartisan support for the FIT21 crypto market structure bill.

Also Read: Craig Wright Faces $1.9M Legal Bill As London Court Issues Freezing Order

Challenges Mount in Overturning Crypto Rule Veto

Despite bipartisan support, overturning the veto remains challenging. The House needs 290 votes, 60 more than the initial 228 votes in favor. Cody Carbone from the Chamber of Digital Commerce expressed doubts about reaching this threshold.

Carbone emphasized the difficulty of changing 60 members’ minds in a week. He acknowledged the efforts for consumer protection and good governance. However, he believes the attempt to override the veto will ultimately fail.

The crypto industry remains hopeful but realistic about the upcoming vote. They recognize the steep hill to climb to overturn the veto. The focus now is on rallying additional support in the House.

The outcome of the vote has significant implications for the crypto industry. If the veto is overturned, it could ease concerns about banks’ ability to safeguard digital assets. Conversely, if it stands, firms may need help complying with SAB 121.

The crypto industry has been vocal about its concerns. They argue that the rule could stifle innovation and hinder the growth of digital assets. The upcoming vote is crucial for determining the regulatory landscape for crypto.

Supporters of overturning the veto emphasize the importance of flexibility for financial institutions. They argue that SAB 121 imposes undue burdens on firms holding crypto assets. The vote will be a crucial indicator of congressional support for the crypto industry.

Also Read: Venezuela’s Digital Asset Remittances Hit Yearly $460 Million

 

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Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Regulation

John Deaton Outlines Four Key Objectives For White House Crypto Council

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2 hours ago

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January 22, 2025

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The US crypto ecosystem is foreseeing potential developments under President Donald Trump, with the formation of a Crypto Council being a top priority. While the White House’s Crypto Council is expected to enhance crypto policies, pro-XRP attorney John Deaton outlined four key areas the body should prioritize.

Reportedly, the Trump administration will create a Crypto Advisory Council including 24 members from the crypto sector. Despite Trump’s exclusion of crypto from his first executive orders, the crypto community remains optimistic about the government’s potential policies.

John Deaton’s Crypto Council Highlights: A Closer Look

In his recent X post, XRP lawyer John Deaton highlighted his key concerns for Donald Trump’s upcoming crypto policies. As the Crypto Council takes shape, Deaton emphasized that the council’s top priorities should be SAB 121, Bitcoin reserve, crypto tax payments, and crypto tax policies.

At the top of the list was the dismissal of the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121 (SAB 121). As per Circle CEO Jeremy Allaire’s statement, SAB 121 made it difficult for banks and financial institutions to hold crypto assets. Reinforcing Allaire’s opinion, John Deaton stated, “It [SAB 121 abolition] is foundational and allows Crypto to become part of the financial infrastructure in a global economy.”

Bitcoin Reserve and Crypto Taxation

Further, the XRP lawyer suggested the establishment of a de facto SBR through a potential executive order. Emphasizing the strategic Bitcoin reserve as an important crypto policy to be included, Deaton added,

He could order the creation of a cryptographic escrow locking up the 200K BTC, currently owned by the USG, for 20 years. This serves as a de facto SBR – an asset owned by the USG, with no intent to sell.

In addition, John Deaton highlighted the significance of crypto taxation in the Crypto Council’s policies. According to him, allowing people to pay taxes in crypto without incurring capital gains tax would be a significant step forward.

Another key point he emphasized was the need to reassess the classification of cryptocurrencies. The XRP lawyer stated that the IRS’s classification of crypto as property, subject to capital gains taxes, needs reevaluation.

Memecoin Regulation vs SAB 121: Deaton’s Preference

Previously, John Deaton pinpointed his preference for memecoin regulations over the SAB 121 legislation, triggered by the recent memecoin frenzy. However, his recent post surprisingly omitted memecoin regulations and instead highlighted SAB 121 as the primary concern.

The XRP lawyer’s demand for memecoin regulations came amid controversies surrounding Trump’s TRUMP memecoin. Others including Bill Morgan have also highlighted the emergency of introducing comprehensive crypto regulations. However, John Deaton’s recent omission of memecoin regulations remains speculative.

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Nynu V Jamal

Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Ex-SEC Lawyer Says XRP Lawsuit Settlement Weeks Away

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6 hours ago

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January 22, 2025

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The crypto community is rife with speculation about an imminent Ripple SEC case settlement as the US Securities and Exchange Commission (SEC) prepares for its first meeting under acting chair Mark Uyeda. However, ex-Securities lawyer Marc Fagel debunked rumors of the settlement. He suggested that those holding out for a resolution will likely be disappointed.

According to the former SEC attorney, the Ripple SEC case settlement is likely to happen after Paul Atkin’s appointment as the SEC Chair. While all eyes are on Thursday’s closed meeting, it remains uncertain whether the XRP lawsuit will reach a conclusion shortly.

Is Ripple SEC Case Settlement Imminent?

In his recent X post, Securities lawyer Marc Fagel dismissed rumors of the Ripple SEC case settlement, which the community expects to follow Thursday’s closed meeting. Asserting that the meeting has nothing to do with the XRP lawsuit, Fagel stated,

This is the same meeting they hold nearly every week. They will vote on recommendations calendared weeks ago. Those expecting something monumental to happen are about to be disappointed.

Further, Fagel clarified the buzz surrounding the Ripple SEC case, positing that a settlement this week is impossible. Instead, he believes the Trump administration might facilitate a resolution, but only after Paul Atkins takes charge.

SEC’s First Closed Meeting with Acting Chair Mark Uyeda

Fagel’s post came in response to Fox Business journalist Eleanor Terrett’s thread, which revealed, “The SEC will hold its first closed meeting since Mark Uyeda took over as acting chair on Thursday.” This follows Mark Uyeda’s launch of a dedicated Crypto Task Force with Commissioner Hester Peirce as the lead. According to the agenda, Uyeda’s meeting would include the institution and settlement of injunctive actions and administrative proceedings, resolution of litigation claims etc.

Significantly, the potential closed meeting has sparked anticipations of a near-term settlement in the XRP lawsuit. Experts like MetaLawMan expect the SEC’s release of the Inspector General’s report on Bill Hinman’s conflicts of interest shortly. “I can’t think of any reason that simple act of transparency would need to wait for Paul Atkins’ arrival,” added MetaLawMan.

Mark Fagel Predicts a Possible 10-Month Delay in Ripple Case

Recently, Marc Fagel shed light on a possible delay in the Ripple SEC case settlement despite the XRPArmy’s growing optimism. Fagel’s statement that the lawsuit may conclude quickly or drag on for an extended period underscored the case’s uncertain outcome.

Despite the ongoing debate, the community remains optimistic about the lawsuit’s settlement. However, it needs to be seen how the closed meeting will impact Ripple vs SEC.

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Nynu V Jamal

Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Thailand Boosts Crypto Ambitions, Welcomes Bitcoin ETFs on Local Exchanges

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9 hours ago

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January 22, 2025

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Thailand is witnessing a significant breakthrough in its ambitious vision to establish a digital asset hub. A recent report on Wednesday revealed Thailand’s plans to adopt Bitcoin ETFs, permitting local exchanges to list the exchange-traded funds.

Thailand Prepares for Bitcoin ETF Debut

The Thai Securities and Exchange Commission (SEC) plans to approve its first Bitcoin ETF, aligning with the country’s crypto hub vision, Bloomberg reported on January 15.

SEC Secretary-General Pornanong Budsaratragoon posited that the move would allow individual and institutional investors to invest in the Bitcoin vehicles directly.

Promoting the use of cryptocurrencies, Thailand is paving the way for the worldwide adoption of digital assets. During an interview on Tuesday, Pornanong stated,

Like it or not, we have to move along with more adoption of cryptocurrencies worldwide. We have to adapt and ensure that our investors have more options in crypto assets with proper protection.

Although, One Asset Management in Thailand has introduced a fund-of-fund tracking international Bitcoin ETFs, a direct investment tool remains pending approval. The ONE Bitcoin ETF Fund of Funds Unhedged and not for Retail Investors (ONE-BTCETFOF-UI) and was approved by the Thai SEC last year.

Thailand’s Thaksin To Legalize Crypto

The latest development came on the heels of Pheu Thai Party leader Thaksin Shinawatra’s efforts to legalize crypto. Citing the incoming US President Donald Trump’s crypto-friendly approach, Thaksin suggested Thailand embrace a more progressive stance on virtual assets. He also proposed the increased issuance and use of stablecoins.

Digital-asset trading activity in Thailand is picking up amid a wider rally that pushed Bitcoin to a record high of $108,315. Crypto hedge funds had a great last year but failed to give more returns than Bitcoin (BTC), as per Bloomberg

Thailand’s Broader Crypto Vision and Regulations

Thailand has long been striving to solidify its position at the forefront of the global crypto market. In a recent development, the country announced its crypto payment pilot project, with the trial set in Phuket.

While the initiative is expected to be executed within Thailand’s existing legal framework, it bolsters the nation’s crypto vision. The country is broadly looking to boost crypto adoption and Bitcoin ETFs will be welcome move for the local crypto industry.

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Nynu V Jamal

Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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