The United States Senate has made a significant move in the world of cryptocurrency by passing a resolution calling for the repeal of a controversial rule imposed by the Securities and Exchange Commission (SEC). The rule in question, known as Staff Accounting Bulletin No. 121 (SAB 121), requires banks to list customers’ digital assets on their balance sheets. This mandate has been heavily criticized for stifling innovation in the crypto sector.
The Senate’s vote of 60 to 38 in favor of H.J.Res. 109 marks a bipartisan disapproval of the SEC rule from both houses of Congress. This vote, according to Senator Cynthia Lummis, is historic as it is the first standalone crypto legislation to be passed by Congress.
Despite the Senate’s approval, President Joe Biden has indicated that he will veto the resolution, citing the need to manage future crypto-asset-related issues. If the veto is carried out, the resolution will return to Congress, requiring a two-thirds majority to pass again.
The Blockchain Association has highlighted that a presidential veto would disregard the increasing awareness among voters of the importance of crypto. Representative Mike Flood, a sponsor of the resolution, has urged President Biden to reconsider his intent to veto the resolution.
The passage of this resolution by the Senate signals a growing legislative push to support the crypto industry. If enacted, this resolution could bring about a shift in how digital assets are treated by financial institutions and regulators in the United States.
Uniswap Labs CEO Hayden Adams has emphasized the importance of regulators reassessing their stance on crypto, especially in light of the upcoming presidential election. He warns that strict measures against crypto entities could alienate important voters.
Overall, the Senate’s vote on this resolution reflects the evolving landscape of the crypto industry and the increasing importance of digital assets in the financial world.
