US House Passes Resolution to Overturn SEC’s Guidance on Crypto Banking SAB 121

The US House voted to approve a new law that cancels a rule made by the SEC, which stops banks from having cryptocurrencies.

In March 2022, the United States Securities and Exchange Commission (SEC) introduced SAB 121, which explains how banks should handle crypto assets for their customers. But basically, it stops banks from holding cryptocurrencies for their customers. In short, the SEC blocked banks from holding crypto assets on behalf of customers.

On May 8, 2024, The House voted to pass a bipartisan bill called H.J. Res 109, which aims to cancel the SEC’s rule SAB 121. This rule made banks keep their customers’ cryptocurrencies on their financial records.

Republican Party Representative Mike Flood, who introduced this resolution, said that SAB 121 was unfair to banks that were looking to provide crypto custody.

On 8 May 2024, The US White House said that it doesn’t like the idea of House members trying to cancel SAB 121. They think it would mess up the SEC’s plans to keep crypto investors safe and protect the whole financial system.”

It is worth it to note that even though the House approved the bill, President Biden said he would stop it from becoming law by using his veto power.

The US White House opposed the idea of cancelling SAB 121 and claimed that such things would only create financial instability and market uncertainty.

Now it will be interesting to see the next outcome in this case because one side crypto entrepreneurs in the US jurisdiction are against the current ruling government and other side former US President Donald Trump showing significant support for Bitcoin, ahead of the US presidential election.

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