US House overturns SEC accounting bulletin in successful measure passage.

TLDR:

• House voted 228-182 to pass a measure overturning SEC bulletin on crypto custody
• White House opposes the measure, stating it could introduce financial instability

Summary:

The US House passed a measure aimed at overturning a controversial SEC bulletin that establishes accounting standards for firms that custody crypto. The bulletin, issued in 2022, has drawn controversy for requiring firms to record customer crypto holdings as liabilities, potentially hindering banks from safeguarding digital assets. Despite the House voting in favor of the measure, the White House expressed opposition, with President Biden stating he would veto it due to concerns over market instability.

The debate in the House highlighted contrasting views, with supporters arguing that the bulletin imposes undue costs on financial institutions, while opponents emphasized the need for transparency and protection against fraud in the crypto industry. The measure may now proceed to the Senate for further consideration, with potential bipartisan support expected.

Overall, the outcome of this measure could have significant implications for the regulatory framework surrounding crypto-assets, with stakeholders closely monitoring the progression of the bill through the Senate.