U.S. House expected to uphold Biden veto preserving SEC accounting rule

The Biden Administration is on the verge of securing an important victory in its crackdown on cryptocurrency.

A resolution that would remove regulatory roadblocks for traditional investment banks looking to hold digital assets is unlikely to get enough votes in the House of Representatives to overturn President Biden’s veto when it goes back for a vote on Wednesday, FOX Business has learned.

People with direct knowledge of the vote say the resolution to repeal SAB 121, an accounting bulletin issued by the staff of the Securities and Exchange Commission that largely prohibits banks from keeping custody of crypto, will not muster the necessary two thirds majority in the House to override Biden’s veto of the joint resolution known as H.J. Res.109.

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President Joe Biden speaks in the Rose Garden of the White House in Washington, DC, US, on Tuesday, May 14, 2024. Biden is hiking tariffs on a wide range of Chinese imports, including semiconductors, batteries, solar cells, and critical minerals, in (Photographer: Tierney L. Cross/Bloomberg via Getty Images / Getty Images)

Roughly 60 members would need to change their votes to go against Biden, a scenario that House leaders believe is unlikely. Both the House and Senate, through simple majority, voted in favor of rescinding SAB 121 before the president’s veto in May. 

Some crypto investors say they plan to watch the vote closely on Wednesday afternoon to see which Democrats double down on what they see as an anti-crypto position. 

The issue of cryptocurrency regulation has become increasingly political in recent months as GOP presidential candidate Donald Trump has been courting crypto investors as a potentially important voting bloc in the November election. The Republican National Committee, reflecting Trump’s position, recently integrated cryptocurrency issues into its 2024 platform, vowing to “end Democrats’ unlawful and un-American crypto crackdown.”

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Some in the crypto world were hopeful that the recent turmoil in the Democratic Party following Biden’s disastrous performance in the first presidential debate, which has resulted in prominent party members calling for his resignation, would cause some Congressional Democrats in tight races to pivot to help override Biden’s veto of H.J. Res.109.

President Trump signs an executive order to transform the federal hiring processand replace one-size-fits-all, degree-based hiring with skills-based hiring during the American Workforce Policy Advisory Board meeting in the east room of the White Hous (Getty Images)

But the opposite seems to be the case, with Democrats not seeking to further weaken the president, according to sources on Capitol Hill.

“There…