US House to Vote on Overturning Crypto Custody Bill Veto

US House to Vote on Overturning Crypto Custody Bill Veto

Elena Santos
2 min read

US House to Vote on Overturning Biden's Veto of Crypto Custody Bill

The US House of Representatives is gearing up for a crucial vote next week to decide the fate of President Joe Biden's veto on a crypto custody bill. This bill aims to reverse a rule mandating crypto custodians to document their holdings on balance sheets, a move contested by Biden due to concerns about hindering the SEC's regulatory capabilities and protecting investors.

If the House secures a two-thirds majority vote, it could potentially trigger a significant recovery in the struggling crypto market, which has been grappling with declining prices and selling pressure. This prospective reversal enjoys bipartisan support, driven by both political parties' endeavors to appeal to crypto voters in light of the upcoming US Presidential elections.

In the past 24 hours, the crypto market has displayed a notable resurgence, witnessing a 1.12% increase in the global market cap. Major cryptocurrencies such as Bitcoin and Ether recorded gains of 1.03% and 0.24% respectively, while Cardano saw even higher increases at 2.47%.

Key Takeaways

  • US House set for a crucial vote to potentially overturn Biden's veto on crypto custody bill.
  • A two-thirds majority in Senate and House is requisite for overturning the veto.
  • Crypto market displays signs of revival, with prominent cryptocurrencies trading positively.
  • Bitcoin and Ether record gains of 1.03% and 0.24% respectively over the past 24 hours.


The potential negation of Biden's veto on the crypto custody bill could inject momentum into the ailing crypto market, benefiting major players like Bitcoin and Ether. This move, backed by bipartisan support, aims to court favor with the crypto-friendly electorate in anticipation of the upcoming elections. In the short term, the immediate market rebound is apparent from recent gains. In the long term, it could redefine regulatory frameworks, influencing investor confidence and market dynamics. Instruments such as Bitcoin ETFs may witness increased inflows, reflecting a bullish market sentiment post-regulatory clarity.

Did You Know?

  • Crypto Custody Bill:
    • The Crypto Custody Bill seeks to revise the regulatory framework for entities that hold cryptocurrencies on behalf of others, popularly known as crypto custodians. Specifically, it proposes an exemption for these custodians from the obligation to document their holdings on balance sheets. This alteration carries significant implications for their regulation and auditing, potentially impacting transparency and investor protection.
  • Wyckoff Market Cycle:
    • The Wyckoff Market Cycle serves as a technical analysis approach utilized to comprehend and forecast market movements. It encompasses phases such as accumulation, markup, distribution, and markdown. In the context of the crypto market, the reference to the "re-accumulation phase" suggests that investors are purchasing cryptocurrencies at current prices, potentially setting the stage for an ensuing bullish phase marked by rising prices.
  • Spot Bitcoin ETFs:
    • A Spot Bitcoin ETF (Exchange-Traded Fund) is a financial product that tracks the price of Bitcoin and is traded on stock exchanges akin to shares. Unlike futures-based ETFs, spot ETFs hold actual Bitcoin. The noteworthy net inflows into spot Bitcoin ETFs indicate heightened investor interest and direct capital infusion into Bitcoin, capable of influencing market dynamics and price trends.

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