Bitcoin Falls 1.59% Amid Biden’s Potential Veto of House Bill Reversing SAB 121

• Bitcoin range bound between $61,165.50 and $61,707.78
• US House of Representatives passes bill to curtail SEC overreach
• Inflows into Bitcoin are on the rise despite the weak price action 

Bitcoin and other cryptocurrencies faced a downturn today, with Bitcoin trading at $61,515 as of 07:49 UTC. This marks a decrease of 1.55% over the last 24 hours. However, amidst this decline, a beacon of hope emerged from the United States that could potentially uplift the crypto market.

House of Representatives Passes Bill Overturning SAB 121

Yesterday, the US House of Representatives passed a bipartisan bill to curb regulatory overreach by the Securities and Exchange Commission (SEC) in cryptocurrency. The bill effectively overturned the SEC’s Special Accounting Bulletin 121 (SAB 121), which mandated banks to include their customers’ crypto assets on their balance sheets, contrary to traditional investments like securities.

Breaking: Biden Administration expresses that they would Veto Legislation Allowing Financial Firms to Custody Bitcoin and Crypto 👀@POTUS has expressed that he would veto this House Joint Resolution if it came to his desk :https://t.co/BTlzw5cdpg

House Joint 109 is:… pic.twitter.com/iptSMe8cMa

— MartyParty (@martypartymusic) May 8, 2024

Joint House Statement On SEC Regulation

In a joint resolution statement, the House disapproved of the SEC’s rule, highlighting its belief that SAB 121 was inconsistent with existing regulations and practices. The resolution emphasized that such regulatory measures would not be enforced, relieving banks and financial institutions grappling with the complexities of custodial crypto assets.

Mike Flood, a Republican representative, expressed his support for the resolution, arguing that SAB 121 placed an undue burden on banks involved in custody services for cryptocurrencies. He contended that custodial assets have traditionally been considered off-balance sheet, and subjecting them to new regulatory requirements would stifle innovation and growth in the crypto sector.

President Biden Promises To Veto Bill

Despite the positive response from the House of Representatives, the battle for regulatory clarity in the crypto space is still ongoing. President Joe Biden has issued a warning, signaling his intention to veto the bill. This potential veto injects uncertainty into the regulatory landscape, highlighting the ongoing tension between governmental bodies over the appropriate level of oversight for cryptocurrencies.

Move By House Of Representatives A Vote Of Confidence For BTC

Nevertheless, industry proponents see the House’s support for cryptocurrencies as a significant step forward. The decision to reject SAB 121 underscores a growing recognition of the unique characteristics of crypto assets and the need for tailored regulatory frameworks that foster innovation while safeguarding investors.

JUST IN 🇺🇸 – Republicans in the House of Representatives have chosen @GOPMajorityWhip Tom Emmer as their nominee for Speaker of the House.

Emmer is a notable supporter of #Bitcoin and recently put forth the first anti-CBDC bill in the United States. pic.twitter.com/kJ86KrAqEd

— Swan (@Swan) October 24, 2023

The news from the US comes at a critical juncture for the crypto market, which has been grappling with heightened volatility and regulatory scrutiny in recent months. Despite the current price downturn, the prospect of more favorable regulatory conditions could inspire renewed confidence among investors and stakeholders.

Bitcoin Trading At Key Support Level Amidst Rising Regulatory Uncertainties

Bitcoin has been on a downtrend for the last 24 hours. However, Bitcoin has hit strong support at $61,165.50 and has bounced off it twice in the previous 10 hours. While buying volumes are on the rise, bulls still need to be in the clear. For a bullish reversal to be confirmed, Bitcoin must push through critical resistance at $61,707.78. If bulls can push Bitcoin through the $61,707.78 resistance, then 62,605.35 would be a key target in the day. 

However, two things could happen today if bulls fail to break the $61,707.78 resistance. One is possible consolidation between the $61,707.78 resistance and $61,165.50 support until the market finds a clear direction. In the other scenario, bears take control and push Bitcoin through the $61,165.50 support. In such a case, Bitcoin could continue its slow grind towards $60k in the short term. 

Bitcoin More Likely To Consolidate For The Remainder Of The Day

Of the scenarios that could play out today, Bitcoin will likely keep consolidating for the rest of the day. That’s because there has been no notable volume increase in the last few hours. Also, while the House of Representatives has nullified the SEC’s overreach in crypto, the US president seems bent on vetoing the bill. 

That said, the trend for Bitcoin will likely continue to increase over time. That’s because demand, institutional and retail, continues to rise in the day. For instance, the Hong Kong ETFs are gaining demand, and the US ETFs continue to record positive inflows. This is at a time when the mined supply entering circulation has dropped by half after the recent block halving.