A resolution passed by a majority of lawmakers in the United States Senate is urging the Securities and Exchange Commission (SEC) to revoke a rule that affects financial institutions engaged in business with cryptocurrency firms.
With a vote of 60 to 38 on May 16, U.S. Senators approved H.J.Res. 109, a resolution that nullifies the SEC’s Staff Accounting Bulletin No. 121. The commission’s rule mandates banks to include customers’ digital assets on their balance sheets, along with maintaining capital against them. This regulation has faced criticism from many lawmakers and industry leaders who believe it hampers innovation.
“The Senate vote, with an astounding 60 ‘Yeas,’ sends a powerful message that both houses of Congress, regardless of political differences, clearly disapprove of this rule,” stated the Blockchain Association, a crypto advocacy group, in a post on May 16.
Source:
Senate.gov
On May 8, before the resolution was passed by the U.S. House of Representatives, President Joe Biden expressed his intention to veto the bill in order to “protect investors in crypto-asset markets and safeguard the broader financial system.” Should the President veto the legislation, it will be returned to Congress and require a two-thirds majority vote to pass again.
“The possibility of a presidential veto overlooks the fact that there is a growing awareness among the voting public, particularly among young people, that crypto is something our elected officials should prioritize,” commented the Blockchain Association.
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This vote demonstrated an uncommon bipartisan effort by the U.S. Senate, with a 51-49 split in favor of Democrats. According to Senator Cynthia Lummis, it marked the first time this session of Congress passed “standalone crypto legislation.” The White House has not yet released a statement regarding the passing of the resolution.
“It is evident that there is overwhelming opposition to SAB 121, and I urge [President Biden] to reconsider his previous intent to veto the resolution,” said Representative Mike Flood, the sponsor of the resolution.
This joint resolution could serve as a signal for another crypto bill, the Financial Innovation and Technology for the 21st Century Act. This legislation aims to clarify the roles of the SEC and Commodity Futures Trading Commission in regulating digital assets. It passed the committee in July 2023 and is anticipated to be introduced for a floor vote in the House in May.
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