Senate Overturns SEC Crypto Rule, Decision Awaits Biden

As an analyst with a background in financial regulation and experience in following the cryptocurrency market, I view this development as a significant step forward for the crypto industry. The bipartisan vote to overturn SAB 121 in the U.S. Senate sends a clear message that both houses of Congress are unhappy with the current rule and want more clarity on how banks can engage with digital assets.

In a unanimous, bipartisan decision, the U.S. Senate passed a resolution with a supermajority of 60 votes to repeal Staff Accounting Bulletin 121 (SAB 121). This action aims to adjust how banks report their cryptocurrency-related activities. The strong support from members of both political parties signifies significant discontent among lawmakers regarding this issue.

Senate Overturns SEC Crypto Rule, Decision Awaits Biden

This Congressional Review Act (CRA) resolution reaching a passing point in Congress signifies an important achievement as it represents the initial independent cryptocurrency legislation to be approved. Subsequently, it moves forward to President Biden’s office, carrying the possibility of a veto.

As a crypto investor, I’m thrilled to see that the Senate has voted in favor of this proposal with an impressive 60 “Yeas.” This clear-cut approval from both sides of the political aisle sends a powerful message that this rule is not welcome within the halls of Congress.

— Blockchain Association (@BlockchainAssn) May 16, 2024

At the Congressional level, the passing of the CRA resolution marking the first crypto legislation is a significant milestone. This legislation will now head to the President’s desk for potential veto. Senator Cynthia Lummis (R-WY) celebrated this vote as a victory for financial innovation, emphasizing that under SEC Chair Gary Gensler’s leadership, the Biden administration should take a hands-off approach.

The subject has garnered significant interest, particularly among the youth who are heavily involved in digital currency transactions. A survey conducted by Digital Currency Group (DCG) indicated that nearly half of voters in key states were opposed to candidates who are against cryptocurrency initiatives. This data underscores the expanding political clout of pro-crypto advocates within the electorate of certain states.

Critics of SAB 121 argue that the regulation is overly stringent towards consumers, as it prevents banks from dealing with a significant portion of financial assets in the digital domain.

The congressional approval of this issue is unmistakable; the focus shifts towards the Biden administration next. They anticipate that the president will take heed of the prevailing sentiments among congressmembers and ultimately endorse the revocation of SAB 121.

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2024-05-17 00:36