United States

Though the resolution overturning an SEC rule on banks handling crypto passed in the House in May, the legislation required at least 288 members to override President Biden’s veto.

The US House of Representatives could not gather enough support to override President Joe Biden’s veto of a resolution affecting a Securities and Exchange Commission (SEC) rule on banks recording cryptocurrency as a liability on their balance sheets.

In a July 11 vote, 228 House members voted to override President Biden’s veto of H.J.Res. 109, overturning SEC Staff Accounting Bulletin (SAB) No. 121 — 60 votes short of the two-thirds majority required. The failed vote suggested that the veto would likely stand, and US banks would be limited from serving as crypto custodians for their customers, barring future legislation.

“It did not have to be this way,” said Representative Patrick McHenry on July 10 before a potential vote. “On digital assets, on the regulation of digital assets, on the functioning of a new asset class that a substantial number of Americans and the world are using [...] The Biden administration has been given every opportunity to work with this Congress on digital asset policy and to come to a reasonable resolution on digital asset policy.”

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