The Biden election situation is urgent! SEC reports relaxing encryption accounting law SAB121 to win over Web3 companies for votes

This site (120btC.coM): As the Biden election situation becomes increasingly serious, in order to cope with the pressure of the election, according to sources, the SEC has begun to relax some of the guidance of the SAB121 crypto accounting bill, and some companies and financial institutions have proposed Commerce requirements, which the SEC agreed to, allowing them to be exempt from controversial cryptocurrency accounting guidance.

Since the issuance of SAB121 in March 2022, businesses have been seeking advice from the SEC on how to develop new policies and procedures related to cryptocurrencies due to the bankruptcies of several cryptocurrency industry companies, but the source added that currently SAB121 Essentially nothing has changed

The House of Representatives failed to override the presidential veto, and SAB121 remains in effect

In February of this year, Nebraska Republican Rep. Mike Flood and Democratic Rep. Wiley Nickel introduced a resolution to overturn SAB121. In May, The House passed the resolution in a vote of 228 to 182, including 21 Democrats and a majority of Republicans. Subsequently, the Senate also passed the measure by a vote of 60 to 38.

Although both houses of Congress passed the resolution, President Biden ultimately vetoed it. The White House stated in a statement that it "believes that this will disrupt the SEC's work to protect investors in the crypto asset market and the broader financial system."

Just this Thursday, US lawmakers once again tried to override President Biden's veto by a vote of 228 to 184. But failed. The proclamation will remain in effect as the two-thirds majority threshold required to override a presidential veto has not been met.

Overriding a veto requires a two-thirds majority vote in both houses of Congress, which means 67 of the 100 senators in the Senate and 194 of the 290 members of the House of Representatives. In Thursday's vote, 21 Democrats and 207 Republicans voted in favor, while 183 Democrats and 1 Republican voted against, falling short of the two-thirds majority threshold.

What is SAB121?

SAB121 will be implemented in March 2022. The SEC requires digital asset custodians to treat the digital assets they hold as liabilities and calculate them at fair value on the balance sheet. This rule means that if a bank holds $1 billion worth of Bitcoin on behalf of a customer, it must hold $1 billion in cash to offset this "liability" on its balance sheet.

This regulation is widely regarded as unreasonable because the assets belong to customers and not the banks themselves. Critics believe that SAB121 effectively excludes banks from the cryptocurrency market, which in turn reduces Customer Protection.

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