ChainCatcher news, according to Un Chained Crypto, during the public testimony of the Wyoming Blockchain, Financial Technology and Digital Innovation Special Committee, the largest custodian bank in the U.S., Bank of New York Mellon (BNY), was confirmed to have received an "exemption" from the U.S. Securities and Exchange Commission (SEC) SAB 121 accounting standards for its institutional cryptocurrency custody business.U.S. Senator Cynthia Lummis (R-WY) Chief Legal Counsel Chris Land stated that the SEC and possibly other regulatory agencies have cleared the way for Bank of New York Mellon to provide institutional digital asset custody services. Land stated in the testimony: "Bank of New York Mellon is seeking to engage more deeply in the cryptocurrency custody business, and they have encountered some issues with Accounting Bulletin (SAB) 121, and the SEC has clearly granted them some kind of exemption so they can continue to move forward."Previously, SEC Chief Accountant Paul Munter unexpectedly revealed in a speech that the agency had granted some SAB 121 exemptions, primarily finding that if certain conditions are met, the rule does not apply to certain entities. Munter stated that a bank, several brokerage firms, and other entities using blockchain to track and transfer traditional financial assets have received exemptions, but he did not specify the names of these entities.

ChainCatcher news, Fox reporter Eleanor Terrett disclosed on X that the bipartisan blockchain congressional group Blockchain Caucus is calling on Harris to do three things regarding cryptocurrency.Specific actions:Repeal and reform SAB 121Pass FIT21 and work with Congress to pass a final bill to establish clear road rulesEncourage her to recognize the importance of cryptocurrency, especially in terms of remittances

ChainCatcher news, according to The Block, sources have revealed that some companies and financial institutions have made certain business requests, and SEC staff have agreed that these requests will allow them to operate without being bound by the controversial cryptocurrency accounting guidance.Since the release of SAB 121 in March 2022, following a wave of bankruptcies in the cryptocurrency industry, companies have been seeking advice from the SEC to develop new policies and procedures related to cryptocurrencies. Sources added that SAB 121 itself has not changed.SEC insiders stated, "In April 2022, there were many unresolved issues regarding how the law would come into play on these matters, and we have seen many participants in the crypto industry act recklessly while providing these services, harming many customers."Sources further noted that companies have now demonstrated that certain procedures and technologies they have implemented allow customers to retrieve their cryptocurrencies in bankruptcy just like any other asset (such as dollars), thus not incurring the obligations set forth by SAB 121.

ChainCatcher news, according to CoinDesk, the U.S. House of Representatives voted on Wednesday whether to overturn President Joe Biden's veto of the resolution related to SAB 121, but it did not pass. The U.S. Securities and Exchange Commission's cryptocurrency accounting policy remains unchanged. One of the core Democratic negotiators on cryptocurrency legislation, Representative Maxine Waters, stated that the SEC and the banking industry are negotiating to change the controversial accounting policy.It is reported that SAB 121 was first issued in 2022 and has sparked controversy over the past year. It requires cryptocurrency custodians to record the cryptocurrencies held by clients as liabilities on their balance sheets. The crypto industry is concerned that this move could prevent banks from safeguarding digital assets.

ChainCatcher news, according to Bitcoin.com, on Wednesday, Federal Reserve Chairman Jerome Powell testified before the House Financial Services Committee, where Congressman Josh Gottheimer questioned him about the SEC's Staff Accounting Bulletin (SAB) 121. This bulletin requires banks to include custodial digital assets on their balance sheets, significantly increasing the costs of providing digital asset custody services.Gottheimer cited Powell's previous statement: custodial assets do not belong on the balance sheet, and this has always been the case. Powell generally confirmed this position but did not comment on the SEC's policy, stating that it falls within the SEC's jurisdiction.Critics argue that SAB 121 undermines banks' ability to provide secure digital asset custody, pushing these services toward less regulated entities and increasing consumer risk. Lawmakers have proposed overturning SAB 121, citing its negative impacts. Although Congress passed the first standalone cryptocurrency legislation to overturn SAB 121, President Biden vetoed the bill, emphasizing the need to establish a regulatory framework for digital assets.

According to ChainCatcher, Fox Business reporter Eleanor Terrett stated on the X platform that the U.S. House of Representatives will vote on SAB 121/HJ Res. 109 (Cryptocurrency Custody Accounting Standards Announcement) at 4 PM EST on July 10 (04:00 Beijing time on July 11), but it is expected that lawmakers will not secure enough votes to achieve the two-thirds majority needed to override Biden's veto.

ChainCatcher news, Fox Business reporter Eleanor Terrett stated on social media: "The U.S. House of Representatives may vote on Tuesday or Wednesday to override Biden's veto of SAB 121, which requires a two-thirds majority. While achieving a two-thirds majority to override SAB 121 is a significant ask (about 60 more 'yes' votes than last time), members of Congress planning to vote 'no' should remember that SAB 121 is a key reason for the limited number of institutions providing digital asset custody services, a risk outlined by VanEck in its spot ETH S-1 filing.VanEck stated that Coinbase, as the custodian for all spot ETF products (and most BTC products), poses a risk: ''Coinbase provides ETH custody services for multiple competing Ethereum exchange-traded products, which could adversely affect the operation of the trust and the ultimate value of the shares.' If banks and other 'institutionally capable providers' are discouraged from offering custody services due to SAB 121, does this mean that Biden and the members of Congress voting to retain the bill are directly contributing to this market risk?"

ChainCatcher news, according to Cointelegraph, U.S. President Joe Biden's controversial veto of the SAB 121 bill may be voted on by the House of Representatives next week. SAB 121 is a proposed rule that requires entities holding cryptocurrencies to record these holdings on their balance sheets.According to the weekly schedule released by House Majority Leader Scalise, the rule is currently on the House's "legislation that may be considered" list. Voting to override or uphold the presidential veto is a constitutional obligation of the House, so a vote must take place again. The vote may occur on Tuesday or Wednesday.

ChainCatcher news, according to DL News, Pantera Capital analysts stated that Biden's move to appease the crypto industry is sincere. Although he recently blocked a bill (SAB 121) that was seen as supportive of crypto, his veto is more likely due to his unwillingness to publicly oppose the commissioner he appointed (SEC Chairman Gary Gensler). Even with the veto of the SAB 21 bill, Biden has affirmed a favorable stance towards onshore crypto innovation, indicating a shift in the current administration's tone.It is noteworthy that Biden did not veto a more significant bill—the FIT21 bill supporting cryptocurrencies, which passed in the House in mid-May and will continue to evolve as it is reviewed by the Senate.

ChainCatcher news, according to Cryptoslate, the upcoming House appropriations budget may prevent the U.S. SEC from implementing its controversial Staff Accounting Bulletin 121 (SAB 121).FOX Business reporter Eleanor Terrett stated that the bill would prohibit the SEC from using appropriations to enforce the rule. Appropriations allow agencies to incur debt and receive payments from the U.S. Treasury for specified purposes. A policy rider in the budget stipulates that the U.S. SEC is prohibited from implementing or enforcing Accounting Bulletin No. 121, which imposes harmful requirements on digital assets.Terrett noted that Democrats supported an earlier resolution, H.J. Res. 109, with the same goal, which means the Senate may retain this rider in the budget. The bill aims to provide a total of $2 billion in funding for the SEC by 2025, rather than the $2.59 billion requested by SEC Chairman Gary Gensler.It remains unclear whether the budget proposal can pass in its current form. The Republican-majority House is likely to pass the appropriations bill at the hearing on June 5. However, the Democrat and independent-majority Senate will need to negotiate their own appropriations bill with that of the House.

ChainCatcher news, Skybridge Capital founder and managing partner Anthony Scaramucci stated on the X platform that President Biden's stance on cryptocurrency issues could cost him dearly. Vetoing the SAB 121 bill is a very wrong decision, especially at this critical moment.

ChainCatcher news, U.S. House Representative Rep. Mike Flood stated that while President Biden's veto is disappointing, it is not the final decision on SAB 121. Digital assets and cryptocurrencies will continue to exist and are a key component of the future of finance in the United States.

ChainCatcher News, the House Financial Services Committee Republicans stated on social media that President Biden vetoed the SAB 121 bill, which is very disappointing. This move disregards multiple bipartisan votes, sending a clear message to the government that its stance on digital asset policy is wrong. Congress will continue to strive for clarity in digital asset regulation.

ChainCatcher News, President Joe Biden vetoed a resolution that aimed to overturn the controversial cryptocurrency accounting standard SAB 121 set by the U.S. SEC. In an official statement on May 31, he said, "Overturning the thoughtful judgment of SEC staff in this manner could undermine the SEC's broader authority in accounting practices."Biden stated, "My administration will not support measures that jeopardize the welfare of consumers and investors."SAB 121 is set to take effect on April 11, 2024, but has faced strong opposition from the crypto community and lawmakers.Previously, the proposal to overturn SAB 121 was passed by votes in the House of Representatives and the Senate on May 8 and May 17, respectively.

ChainCatcher news, according to The Block, U.S. Senator Cynthia Lummis and Representative Patrick McHenry wrote a letter urging Biden not to veto the "repeal" of the cryptocurrency accounting policy (SAB 121) bill, stating that the voting results from both parties in the House and Senate provide a reason not to veto.ChainCatcher previously reported that Cody Carbone, Chief Policy Officer of the cryptocurrency advocacy organization The Digital Chamber, stated on social media: "We received confirmation that the U.S. Congress only sent the resolution to repeal SAB 121, H.J Res 109, to Biden last night. This changes the 10-day deadline. The U.S. President currently has a time window until June 3 to decide whether to exercise veto power over this resolution (10 days total, excluding Sunday)."

ChainCatcher news, Cody Carbone, Chief Policy Officer of the cryptocurrency advocacy organization The Digital Chamber, stated on social media: "We received confirmation that the U.S. Congress only sent the resolution to repeal SAB 121, H.J Res 109, to Biden last night. This changes the 10-day deadline. The U.S. President currently has a time window until June 3 to decide whether to exercise a veto on this resolution (10 days total, excluding Sundays)."Previously, the bill to overturn SAB 121 was passed by the House of Representatives and the Senate on May 8 and May 17, respectively, and Biden will make a final decision on the bill by May 28.

ChainCatcher news, Variant Fund Chief Legal Officer Jake Chervinsky stated: "If a spot ETH ETF really gets approved, everyone I know who understands the regulatory situation in Washington would be greatly shocked, but that doesn't mean it won't happen. This means that the approval of the ETF could signify a significant shift in U.S. cryptocurrency regulatory policy after the SAB 121 vote, which may be more important than the ETF itself."