US House of Representatives passes SAB 121 crypto rule overturning SEC

The US House of Representatives has passed H.J. Res. 109, a resolution aimed at overturning the Securities and Exchange Commission's SAB 121 regulation on digital assets. The resolution aims to reduce regulatory burden and promote regulated banks to safely hold digital assets. However, the White House supports the SEC and has threatened to veto the resolution, emphasizing that if the President receives H.J. Res. 109, he will veto it.

The House Financial Services Committee explained that H.J. Res. 109 overturns SAB 121, which was established by the SEC under the Congressional Review Act (CRA). By overturning SAB 121, this bipartisan resolution removes barriers that hinder financial institutions and companies from acting as custodians of digital assets under strict regulations, ensuring consumer protection.