- Biden is closing in on victory on the crypto crackdown by keeping SEC’s SAB 121 rule intact.
- Trump’s pro-crypto stance boosts his Polymarket odds, now at 63% versus Biden’s 17%.
Weeks ago, US President Joe Biden vetoed the repeal of Staff Accounting Bulletin 121 (SAB 121), but the debate appears far from over.
The legislation has returned to Capitol Hill, and lawmakers this time aim to secure a veto-free supermajority.
For context, SAB 121, issued by the SEC, contains controversial accounting guidance that is considered unfavorable to cryptocurrency.
What is going on?
On July 9, during a House Financial Services Committee hearing with Treasury Secretary Janet Yellen, Democratic Congresswoman Wiley Nickel (D-NC) turned heads to the issue.
Highlighting the concerns surrounding the controversial topic, he said:
“I want to echo Congressman Flood’s concerns about concentration risk in the crypto custody market due to the SEC’s misguided SAB 121, which makes crypto less safe for consumers.”
He added:
“We have the best banks in the world, and they should be able to take care of this custodial piece.”
The unexpected twist
However, a recent update suggested a significant shift just before voting day, which is July 10.
According to reports, the Biden administration is poised to score a crucial victory in its crackdown on cryptocurrency by enforcing the SEC’s accounting rule, SAB 121, which largely bans banks from holding digital assets.
Source: Taylor Barr/X
Expressing an opinion on the issue, an X user, @publiusbtcsaid,
“Don’t listen to Elizabeth Warren. Save your career and vote yes.”
Echoing similar sentiments was @yugacohlerwho said,
“If House Democrats do not override the President’s veto of SAB121, they will lose the crypto vote in an already challenging election year.”
Crypto community to favor Trump?
This situation underlines the crypto community’s growing dissatisfaction with Biden’s stance on digital assets. With successive anti-crypto measures, his chances of winning the upcoming elections could be in jeopardy.
In contrast, former President Donald Trump is increasingly embracing cryptocurrency, as evidenced by his recent adoption of a concept platform supporting digital asset innovation.
The rack released by Trump’s camp clearly conveyed his feelings and stated:
“Republicans will end Democrats’ illegal and unAmerican Crypto crackdown and oppose the creation of a Central Bank digital currency.”
This development has had a major impact on the Polymarkt prediction market. Just a day ago, Trump was at 62% and Biden at 21%.
However, with the news of SAB 121, Biden’s chances have dropped to 17%, while Trump’s have risen to 63%.
Source: Polymarkt