In a surprise move, the Biden Administration has quashed a Republican-led bill aimed at allowing US banks to offer crypto custody services. Despite passing in the House of Representatives, the White House has announced its intention to veto the bill, effectively killing its chances of becoming law.

The bill, H.J. Res. 109, sought to overturn previous accounting guidance from regulators that made it difficult for banks to offer crypto custody services. However, the White House argues that this guidance is crucial for protecting investors and the broader financial system. In a statement, the Office of the President said that the bill would "disrupt the SEC's work" and that the President would veto it if it passed.

The bill's sponsors argue that the Securities and Exchange Commission (SEC) didn't follow proper procedures when issuing the guidance, and that it's too restrictive for banks to offer crypto services. However, without the President's approval, the bill would need a two-thirds majority vote in both the House and Senate to become law - a difficult hurdle to overcome.

The White House's move is a significant blow to the crypto industry, which had hoped for clearer guidelines on banking services. For now, it seems that US banks will have to wait before offering crypto custody services to their customers.