The upcoming week in the US House of Representatives could mark a pivotal moment as lawmakers prepare to potentially reverse President Joe Biden’s veto of a bill aimed at nullifying a contentious regulation from the US Securities and Exchange Commission (SEC).

According to House Majority Leader Steve Scalise’s weekly agenda, there is a possibility of a vote to override Biden’s veto on legislation seeking to rescind the SEC’s Staff Accounting Bulletin (SAB) 121.

The bill in question is described as follows: “Veto message to accompany H. J. Res. 109 – Providing for Congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Securities and Exchange Commission relating to ‘Staff Accounting Bulletin No. 121.'”

SAB 121, issued by the SEC, mandates that certain companies classify digital assets as liabilities on their financial statements, even when these assets are held on behalf of customers.

President Biden, who vetoed the bill back in May, argued that revoking the SEC’s guidance would undermine the agency’s ability to enforce safeguards and protect investors. In his statement, he emphasized, “This reversal of the SEC’s staff judgment risks undermining the broader authority of the SEC over accounting practices. My administration opposes measures that threaten the welfare of consumers and investors.”

The bill, initially passed by the House with a vote of 228-182 and later by the Senate with a 60-38 majority, is now poised for potential override by Congress. A two-thirds majority in both chambers is required to override a presidential veto.

Originally issued by the SEC in March 2022, SAB 121 has been a subject of significant debate and scrutiny within financial and regulatory circles.

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