Republican efforts to exempt US banks from providing crypto custody services were rejected by the Democratic-led White House. 🏦

House Resolution 109 (H.J. Res. 109) which would remove previous accounting guidance for banks that plan to offer these services to customers, was discussed and prepared for a vote by the House on Wednesday.

However, hours before voting began, the Biden Administration stated its intention to reject the resolution if it makes it through the House and Senate.

The guidance in question, SAB 121, reflects the SEC staff's view of the accounting obligations of companies that protect customers' crypto assets.

If the President is presented with H.J. Res. 109, he will reject it. Last Wednesday's resolution passed through the House, but with only 55% of the vote. All Republicans (207) voted in favor, along with 26 Democrats.

According to the bill's sponsor, Mike Flood (R-Nebraska), the SEC did not consult with the appropriate Federal banking agencies before issuing SAB 121.

What do you think about this? Come on, discuss it in the comments column! 😄