U.S. House Votes to Challenge SEC's Crypto Custodian Rules

Overview of Congressional Crypto Debate

The US House of Representatives passed a resolution aiming to overturn an SEC bulletin on cryptocurrency custodian accounting, which was opposed by US President Joe Biden with a potential veto threat. The resolution challenges the SEC's requirement for custodians to list digital assets as liabilities, a rule deemed non-viable for crypto business within US banks.

Bipartisan Support and Opposition

Receiving unexpected bipartisan support in the House, with a vote count of 228-182, the resolution now faces an uncertain future in the Senate. Despite the bill’s potential to facilitate financial institutions in holding cryptocurrencies, the current presidential stance suggests a high hurdle for its enactment.

Regulatory Concerns and Potential Impact

The debate highlights the tension between fostering innovation in the crypto space and ensuring regulatory oversight. With the White House's statement firmly opposing the resolution, it reflects concerns over the SEC's capacity to regulate the industry and implications for financial stability and market certainty.