US House Votes To Overturn SEC Cryptocurrency Custody Accounting Standards

According to PANews, the US House of Representatives has voted in favor of a resolution aimed at overturning the Securities and Exchange Commission's (SEC) cryptocurrency custody accounting standards. The vote was passed with a result of 228-182, with majority support from Republicans and 21 Democrats voting in favor. The announcement, first issued in 2022, has sparked controversy over the past year. It requires cryptocurrency custody companies to record customer-held cryptocurrencies as liabilities on their balance sheets. The crypto industry fears this move could prevent banks from protecting digital assets. At present, it is unclear whether this resolution will become law. However, the White House issued a 'government policy statement' on Wednesday, stating that President Biden will veto the resolution. The White House stated that 'restricting the SEC's ability to maintain a comprehensive and effective financial regulatory framework for crypto assets will bring serious financial instability and market uncertainty.' The resolution may be submitted to the Senate Banking Committee and subsequently voted on by all members of the Senate.