The upcoming week may witness a pivotal vote in the US House of Representatives concerning the reversal of President Joe Biden’s veto on a bill aimed at nullifying a contentious rule enforced by the US Securities and Exchange Commission (SEC).
According to the weekly schedule disclosed by House Majority Leader Steve Scalise, lawmakers are poised to deliberate on overriding Biden’s veto of a legislative measure designed to revoke Staff Accounting Bulletin (SAB) 121 issued by the SEC.
The bulletin, SAB 121, mandates certain companies to classify digital assets as liabilities on their financial statements, even if these assets are held solely on behalf of customers.
President Biden, who vetoed the bill in May, argued that rescinding the SEC’s guidance would impede the agency’s capacity to enforce protective measures and safeguard the interests of investors.
In his statement at the time, Biden expressed concerns about the potential consequences of undermining the SEC’s expertise in accounting practices, emphasizing his administration’s commitment to policies that uphold consumer and investor welfare.
Previously endorsed by a Republican-led initiative, the bill aiming to curb SAB 121 secured passage in the House with a vote of 228-182 and later gained Senate approval with a tally of 60-38.
To override a presidential veto, Congress must secure a two-thirds majority in both the House of Representatives and the Senate.
Originally issued in March 2022, SAB 121 has been a subject of debate and regulatory scrutiny within financial circles.
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