According to crypto policy experts, the upcoming vote on SAB 121 is not only practical but symbolic amidst political turbulence in Washington. Weeks after President Joe Biden vetoed a bill that would have allowed American banks to hold crypto assets, the legislation is back on Capitol Hill. Lawmakers aim to pass it again, this time with a veto-proof supermajority.
If both the House and Senate pass the bill—a repeal of the SEC’s Staff Accounting Bulletin No. 121 (SAB 121)—it would have a profound impact on the U.S. banking industry, potentially reshaping its relationship with the burgeoning crypto market. This vote is not just about crypto, it’s about the future of banking. It would also send a strong message to the White House that the Biden Administration’s crypto policy is unpopular across the political spectrum. Achieving a two-thirds majority to override Biden’s veto would require substantial support from Democratic lawmakers when the president faces growing calls from within his own party to reconsider his re-election bid.
Crypto Policy Experts Weigh In
Crypto policy experts acknowledge that while SAB 121 faces a challenging path to a veto-proof passage, several factors could help it succeed. Kristin Smith, CEO of the Blockchain Association, a DC-based crypto lobbying group, said, “We’re pushing out communications, and we’re hopeful that it’s within reach—but I think it is a pretty high hurdle.”
She added that several factors lead her to believe passage is possible. For one, the initial repeal of SAB 121 and the subsequent passage in the House of a Crypto Regulatory Framework, FIT 21, caught the industry by surprise. Ultimately, 71 House Democrats split with Biden to approve the latter bill. This number on the right day in the chamber could constitute a supermajority.
A Unique Political Moment
The vote comes at an unprecedented moment in modern American politics, with Democratic lawmakers struggling to express discontent with Biden’s increasingly unpopular candidacy without throwing their party into open revolt. Smith suggests that this week’s SAB 121 vote could provide Democrats with a subtle but unmistakable way to signal their lack of naive loyalty to Biden.
Strategic Implications
Passing SAB 121 with a veto-proof majority would not only enable U.S. banks to hold crypto assets but also demonstrate a significant shift in political dynamics. It would underscore a growing bipartisan consensus on the importance of integrating cryptocurrency into the mainstream financial system, potentially reshaping the political landscape. This vote could mark a turning point in U.S. politics, reflecting the legislative branch’s ability to challenge executive decisions effectively, particularly on emerging technological and financial issues.
