Creative Translation: US House of Representatives Votes to Revoke Controversial SEC Accounting Announcement

The US House of Representatives has voted in favor of a measure aimed at overturning a controversial SEC accounting announcement that established certain accounting standards for custodial cryptocurrency companies. The announcement, first issued in 2022, sparked controversy within the crypto industry, with many industry professionals concerned that it could hinder banks from custodializing digital assets and require custodial cryptocurrency companies to record the cryptocurrencies held by their customers as liabilities on their balance sheets. It is currently unclear whether this measure will become law, as it will be submitted to the Senate Banking Committee and then voted on in the full Senate. The White House has issued a “government policy statement” stating that President Joe Biden will veto the measure. The White House stated that “restricting the ability of the Securities and Exchange Commission to maintain a comprehensive and effective regulatory framework for crypto assets will bring about significant financial instability and market uncertainty.”