U.S. House of Representatives votes to pass resolution aimed at overturning SEC crypto accounting policy SAB 121

The U.S. House of Representatives voted to pass a resolution aimed at overturning the SEC's cryptocurrency custody accounting standards announcement. The vote was 228-182, with a majority of Republicans in favor and 21 Democrats voting in favor. Staff Accounting Bulletin No. 121 (SAB 121), 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 is concerned that the move could prevent banks from protecting digital assets. It is unclear whether the resolution will become law. But on Wednesday, the White House issued a "Statement of Government Policy" in which President Biden promised to veto the resolution. The White House said that "limiting the SEC's ability to maintain a comprehensive and effective financial regulatory framework for crypto assets would bring serious financial instability and market uncertainty." The resolution may be submitted to the Senate Banking Committee and then voted on in front of the full Senate. (The Block)