‘Misguided’ SAB 121 crypto regulation bill returns to Capitol Hill: What now?

• Biden nears crypto crackdown victory by keeping SEC’s SAB 121 rule intact.
• Trump’s pro-crypto stance lifts his Polymarket odds, now at 63% against Biden’s 17%.

Weeks ago, U.S. President Joe Biden vetoed the repeal of Staff Accounting Bulletin 121 (SAB 121), but the debate seems far from over.

The legislation has returned to Capitol Hill, with lawmakers aiming to secure a veto-proof supermajority this time. 

For context, SAB 121, issued by the SEC, contains controversial accounting guidelines viewed as unfavorable to cryptocurrency.

What’s the matter?

On the 9th of July, during a House Financial Services Committee hearing with Treasury Secretary Janet Yellen, Democrat Congressman Wiley Nickel (D-NC) brought attention to the issue.

He highlighted concerns surrounding the controversial topic, saying, 

“I want to echo Congressman Flood’s concerns about the concentration risk in the market for crypto custody due to the SEC’s misguided SAB 121 which makes crypto less safe for consumers.” 

He further added, 

“We have the best banks in the world, and they ought to be able to take care of this custodial banking piece.”

The unexpected twist

However, a recent update suggested a significant shift just ahead of the voting day, i.e., the 10th of July.

As per reports, the Biden administration is close to securing a crucial victory in its cryptocurrency crackdown by preserving the SEC’s accounting rule, SAB 121, which largely prohibits banks from holding digital assets. 

Source: Taylor Barr/X

Expressing an opinion on the matter, an X user, @publiusbtc, said,

“Don’t listen to Elizabeth Warren. Save your careers and vote yes.” 

Echoing similar sentiments was @yugacohler, who said,

“If House Dems do not override the President’s veto on SAB121, they will lose the crypto vote in an already challenging election year.”  

Crypto community to favor Trump?

This situation underscores the crypto community’s growing discontent with Biden’s stance on digital assets. With consecutive anti-crypto measures, his chances of winning the upcoming election might be jeopardized.

In contrast, former President Donald Trump is increasingly embracing cryptocurrency, as evidenced by his recent adoption of a draft platform supporting digital asset innovation.

The statement released by Trump’s camp clearly conveyed his sentiment, and stated, 

“Republicans will end Democrats’ unlawful and unAmerican Crypto crackdown and oppose the creation of a Central BankDigital Currency.” 

This development has significantly impacted the Polymarket prediction market. Just one day ago, Trump was at 62% and Biden at 21%.

However, with the news of SAB 121, Biden’s odds have dropped to 17%, while Trump’s have risen to 63%. 

Source: Polymarket