The US House of Representatives is gearing up for a significant vote this week to potentially overturn President Biden’s veto of SAB 121. Meanwhile, the release of the US Consumer Price Index (CPI) and Producer Price Index (PPI) data for June is highly anticipated.
This week is pivotal for the crypto industry, with investors eagerly awaiting the approval of spot Ethereum ETFs and significant regulatory developments. The US House’s decision on the SAB 121 veto could have far-reaching implications.
The SAB 121 Controversy
The House is expected to vote on overturning Biden’s veto of SAB 121, either on Tuesday or Wednesday. The bulletin has stirred significant concern within the crypto market, with fears that it could restrict banks from offering crypto custodial services. SAB 121 requires crypto custodial firms to record customers’ holdings as liabilities on their balance sheets. While the SEC defends SAB 121 as “non-binding staff guidance” that improves customer disclosures, its impact has been contentious.
In May, the Biden administration vetoed the lawmakers’ attempt to repeal SAB 121. The upcoming vote in the House could challenge this veto.
Economic Data and Federal Testimonies
The week also features crucial economic events, including the release of the CPI and PPI data for June. Jerome Powell is expected to provide his semi-annual monetary policy testimony to the House Financial Services Committee. Market expectations currently suggest a 50% chance of a 25 basis points rate cut by November.
On Wednesday, the Senate Agriculture Committee will hold a hearing on digital commodities oversight with CFTC Chairman Rostin Behnam. Representative Ro Khanna will host a crypto roundtable with key Democrats and billionaire Mark Cuban, aiming to counter Donald Trump’s influence in the crypto space.
Senate Hearings
Later in the week, the Senate will hold hearings for the renomination of SEC Commissioner Caroline Crenshaw and the nomination of Christy Goldsmith Romero, currently a CFTC commissioner, as the new FDIC Chair.
Market Reactions
Ahead of the US CPI release, the broader crypto market has faced pressure. Bitcoin experienced a 5% decline on Sunday, with altcoins seeing even steeper corrections.Stay tuned for updates as the US House prepares for a crucial vote that could shape the future of crypto custodial services and as key economic indicators are released.
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