Tech
US House May Override Biden’s Veto of SAB 121, More Crypto Events Upcoming This Week
This week, the digital asset industry is bracing for significant events and regulatory decisions that could shape its future. One critical development is the anticipated US House of Representatives votes to overturn President Biden’s veto Personnel Accounting Bulletin 121 (SAB 121).
This bulletin requires cryptocurrency custodian firms to record clients’ cryptocurrency holdings as liabilities in their balance sheetsThis development, which comes at a time of great anticipation for Spot Ethereum ETFs approval, has sparked debate within the cryptocurrency community.
Cryptocurrency Events and Regulations
Undoubtedly, SAB 121 has has raised considerable concern between investors and cryptocurrency firms. Many believe that requiring cryptocurrency firms to list customer holdings as liabilities will discourage banks from offering cryptocurrency custody services.
Critics argue that this could stifle innovation and limit access to digital asset investments. However, the SEC has defended SAB 121, describing it as “non-binding staff guidance” aimed at improving transparency and customer disclosures.
In May, President Biden vetoed a legislative attempt to repeal SAB 121a move that many in the cryptocurrency industry found disappointing. The U.S. House will likely vote to override this veto, which could have far-reaching implications for the cryptocurrency market.
1/ Today, despite bipartisan support, President Biden vetoed the repeal of SAB 121, the SEC’s punitive, anti-crypto-accounting guidelines. We are disappointed that the administration chose to ignore bipartisan majorities in both houses of Congress that recognized the damage done by SAB 121. photo.twitter.com/F6GP727UBx
— Blockchain Association (@BlockchainAssn) May 31, 2024
In addition to the SAB 121 vote, the market expects the publication of this week’s key economic indicators: the June U.S. Producer Price Index (PPI) and Consumer Price Index (CPI). These numbers will provide insights into inflation trends and economic health.
Federal Reserve Chairman Jerome Powell will deliver his semiannual testimony on monetary policy before the House Financial Services Committee.
Experts believe there is a 50% chance of a Interest rate cut by 25 basis points by Novemberwhich could impact financial markets, including virtual currencies.
Meanwhile, the Senate Agriculture Committee will hold a hearing on Wednesday focused on oversight of digital commodities, with testimony from CFTC Chairman Rostin Behnam.
This hearing is expected to shed light on regulatory approaches to digital assets and could influence future legislation.
More events on the horizon
Representative Ro Khanna will also be guest a cryptocurrency roundtable featuring top Democrats and billionaire investor Mark Cuban. The discussion aims to counter former President Donald Trump’s critical stance on cryptocurrency.
In particular, Khanna’s engagement with prominent figures, including Democratic lawyers, White House officials, and major cryptocurrency industry players, aims to create a more favorable environment for digital assets.
Later this week, the Senate will hold a hearing on the renomination of SEC Commissioner Caroline Crenshaw and the nomination of Christy Goldsmith Romero as the new FDIC Chair. Romero currently serves as the CFTC Commissioner.
These appointments are significant as the individuals will play crucial roles in shape the regulatory system for virtual assets and financial markets.
Meanwhile, amid these regulatory and economic developments, the broader cryptocurrency market has seen increased volatility.
Bitcoin fell 5% on Sunday, with altcoins facing even sharper corrections. The upcoming release of the US consumer price index has added to market concerns, reflecting how sensitive cryptocurrency prices are to economic data and regulatory news.
Disclaimer: The views expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile and high-risk asset class.
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