<p>House Financial Services Committee Chair Patrick McHenry, R-N.C., spoke in favor of overriding the veto Wednesday, arguing the bipartisan support the resolution received is proof Reps. should stand their ground.&nbsp;</p>
<p>&ldquo;​​SAB 121 is one of the most glaring examples of the regulatory overreach that has defined Chair&nbsp;<a href="https://blockworks.co/tag/gary-gensler" target="_blank" rel="nofollow noopener">Gary Gensler</a>&rsquo;s tenure at the [SEC],&rdquo; McHenry said. &ldquo;It limits consumers options to safely custody their digital assets, upending decades of bank custody practices and increasing concentration risk.&rdquo;&nbsp;</p>
<p><strong>Read more from our opinion section:</strong>&nbsp;<a href="https://blockworks.co/news/senate-gensler-sec-overturn-sab-121" target="_blank" rel="nofollow noopener">It&rsquo;s time to overturn SAB 121</a></p>
<p>The House and Senate&nbsp;<a href="https://blockworks.co/news/senate-passes-resolution-to-overturn-sab121" target="_blank" rel="nofollow noopener">passed Joint Resolution 109 in May</a>. The legislation, if passed, would have overturned SAB 121, the accounting guidance that states digital asset custodians should&nbsp;<a href="https://blockworks.co/news/sec-staff-call-for-crypto-entities-to-show-liability-on-balance-sheet" target="_blank" rel="nofollow noopener">report a liability and &ldquo;corresponding assets&rdquo;</a>&nbsp;on their balance sheets for all custodied cryptocurrencies.&nbsp;</p>
<p>Each chamber approved the resolution, which was brought under the Congressional Review Act, with bipartisan support. Thirty-three Democrats in total voted in favor of the legislation across both chambers.&nbsp;</p>
<p>President Biden,&nbsp;<a href="https://www.whitehouse.gov/wp-content/uploads/2024/05/SAP-HJRes109.pdf" target="_blank" rel="nofollow noopener">as expected</a>, vetoed the resolution shortly after it was passed. His administration stated that by invoking the Congressional Review Act, lawmakers could &ldquo;inappropriately constrain the&nbsp;<a href="https://blockworks.co/tag/sec" target="_blank" rel="nofollow noopener">SEC</a>&rsquo;s ability to ensure appropriate guardrails.&rdquo;</p>
<p>&ldquo;President Biden vetoed the first digital asset-specific legislation that ever passed the House and the Senate,&rdquo; McHenry said. &ldquo;It&rsquo;s never been clearer; this administration would rather play politics and side with power-hungry bureaucrats over the American people.&rdquo;</p>
<hr class="wp-block-separator has-alpha-channel-opacity">
<p><strong>Start your day with top crypto insights from David Canellis and Katherine Ross.&nbsp;<a href="https://blockworks.co/newsletter/empire" target="_blank" rel="nofollow noopener">Subscribe to the Empire newsletter</a>.</strong></p>
<p><strong>Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin.&nbsp;<a href="https://blockworks.co/newsletter/onthemargin" target="_blank" rel="nofollow noopener">Subscribe to the On the Margin newsletter</a>.</strong></p>