On July 10, 2024, Chairman of the House Financial Services Committee Patrick McHenry (NC-10) led Republicans in a debate on the House floor concerning a veto message accompanying H.J. Res. 109. This resolution pertains to congressional disapproval under chapter 8 of title 5, United States Code, of a rule submitted by the Securities and Exchange Commission (SEC) related to "Staff Accounting Bulletin No. 121."
The underlying Congressional Review Act (CRA) resolution received broad bipartisan support in both chambers of Congress. Additionally, there was overwhelming bipartisan support for the Financial Innovation and Technology (FIT) for the 21st Century Act in the House, which included a provision to repeal SAB 121. Lawmakers are currently working to overturn President Biden’s veto of this legislation.
Chairman McHenry's remarks as prepared for delivery stated:
“Mr. Speaker,
“It didn’t have to be this way.
“The Biden Administration has been given every opportunity to work with Congress on digital asset policy.
“In May, Congress passed a resolution to overturn the SEC’s SAB 121 with broad bipartisan support in both the House and Senate. A lot has changed since then.
“Following that vote, the House passed historic digital asset market structure legislation, FIT21, with an overwhelming two-thirds support.
“That means 71 Members of the President’s own party voted for that bill. Today’s vote should mirror the support for FIT21, given that this policy change was also in that legislation.
“SAB 121 is one of the most glaring examples of regulatory overreach that has defined Gary Gensler’s tenure at the SEC.
“It limits consumers’ options to safely custody their digital assets, upends decades of bank custody practices, and increases concentration risk.
“Congress used the mechanism available to us, the Congressional Review Act, to overturn this harmful so-called guidance.
“To be clear, a bipartisan CRA sends a strong message.
“A bipartisan CRA that passes both chambers? That is a mandate from the Americans we represent.
“Despite all of the recent progress and bipartisan agreement—President Biden vetoed the first digital asset specific legislation ever to pass both House and Senate.
“It’s never been clearer: this Administration would rather play politics and side with power hungry bureaucrats over the American people.
“I urge my colleagues to support today’s resolution, overturn the veto, and take a small step to bring sanity to American digital asset policy.”
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