According to Odaily, prior to the U.S. House of Representatives voting on H.J. Res. 109 (a resolution to overturn the SEC's digital asset regulation SAB 121), President Biden issued a threatening statement. He indicated that he might exercise his executive power to veto if there was a resolution to overturn the SEC policy. The White House expressed strong opposition to House members attempting to undermine the SEC's measures to protect crypto asset market investors and the broader financial system.
It's worth noting that in previous administrations, about a third of the threatened vetoes were never implemented, so it doesn't necessarily mean that the veto will definitely be executed. Considering the bipartisan support for the bill, Biden may have to weigh the pros and cons. Patrick Kirby, the policy head of the Crypto Council for Innovation, explained, 'The President has 10 days (excluding Sundays) to sign the resolution into law, allowing the resolution to become law without signing or vetoing.'
In addition, the SEC can also decide to revoke SAB 121 to avoid forcing Biden to decide whether to exercise his veto power. Previously, the U.S. Senate passed a resolution to overturn SEC SAB 121 by a vote of 60 to 38. However, the resolution may be vetoed once it reaches President Biden's desk. The SEC had previously issued Staff Accounting Bulletin 121 SAB 121, which requires companies to record the crypto assets they hold on their balance sheets. Critics argue that this provision is too strict and essentially prevents major custodians and companies from holding crypto assets for customers.