US House Advances Bill To Allow Financial Firms To Hold Bitcoin

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US House Committee Unveils Draft Version of Stablecoin Bill
Source: USDA

The US House voted to overturn a bill that prevents financial firms from acting as custodians for Bitcoin and other cryptocurrencies with a new bill. The proposed legislation, H.J. Res. 109, would overturn the SEC’s Staff Accounting Bulletin (SAB) No. 121. This bulletin imposes restrictions on financial institutions regarding the custody of digital assets, under the Congressional Review Act (CRA).

The measure will now go to the Senate for review. However, the endpoint, the executive office, has already made known its decision on the proposed pro-crypto bill. Early Wednesday, President Joe Biden said he would veto the potential bill to overturn the SEC’s SAB No. 121. “The Administration strongly opposes passage of H.J. Res. 109, which would disrupt the Securities and Exchange Commission’s (SEC) work to protect investors in crypto-asset markets and to safeguard the broader financial system,” The Executive Office of The President stated.

“If the President were presented with H.J. Res. 109, he would veto it.”

Executive Office of The President
US House
Source: ThoughtCo

Also Read: President Biden To Veto Bill Allowing Financial Firms To Hold Bitcoin

H.J.Res. 109 has already received plenty of bipartisan support. The bill would remove roadblocks that prevent highly regulated financial institutions from acting as custodians for digital assets like Bitcoin. The Democratic Party-lead senate will have the next say in the future of the bill, however, they may vote to side with Biden and turn it down.

The US House vote dictates this idea further, with little Democratic support for pushing ahead with the new bill. The legislation will take some days to be voted on by the Senate, but perhaps a decision will come quicker with Democrats in charge.