In a surprising vote of 60 to 38, United States senators have passed H.J. Res. 109, a resolution that nullifies the U.S. Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin No. 121. This bulletin requires banks to include customers’ digital assets on their balance sheets and maintain capital against them, a measure that has received criticism from lawmakers and industry leaders for inhibiting innovation.
The Blockchain Association, a crypto advocacy group, stated, “The overwhelming support of 60 ‘Yeas’ in the Senate vote sends a powerful message that both houses of Congress, regardless of political affiliation, clearly disapprove of this rule.”
However, before the resolution can become law, it must pass in the U.S. House of Representatives. President Joe Biden has already expressed his intention to veto the bill in order to protect investors in the crypto-asset markets and ensure the stability of the broader financial system.
Nonetheless, Perianne Boring, the founder and CEO of the Blockchain Trade Association Digital Chamber, believes that the support from 21 Democratic Party senators could compel the White House to reconsider its position. According to her, “The tide is turning for crypto in Washington.”
The Biden administration may face pressure from more than just the political sphere, as the crypto community is not the only sector hoping for the president to sign the H.J. Res. 109. The American Bankers Association has openly urged President Biden to swiftly sign the resolution into law to protect American consumers.
In other news, the State of Wisconsin Investment Board (SWIB) has reported investments in spot Bitcoin (BTC) exchange-traded funds (ETFs) offered by Grayscale and BlackRock. The SWIB, which manages Wisconsin’s state trust funds, has disclosed that it holds over 2.4 million shares in the BlackRock iShares Bitcoin Trust and more than 1 million shares in the Grayscale Bitcoin Trust, valued at around $100 million and $64 million respectively. As of December 2023, the SWIB manages over $156 billion in assets, with approximately 48% allocated to public equity investments. Other investments include shares of stock in Coinbase, MicroStrategy, and CleanSpark.
Meanwhile, Venezuela’s Ministry of Electric Power has announced plans to disconnect cryptocurrency mining farms from the national grid. This move aims to regulate excessive energy consumption and ensure a stable power supply for the population. According to an announcement from Venezuela’s National Association of Cryptocurrencies, crypto mining is now prohibited in the country. This decision follows a recent crackdown in which 2,000 cryptocurrency mining devices were confiscated in the city of Maracay as part of an anti-corruption initiative. The ministry emphasized the need to provide efficient and reliable electrical service across Venezuela by eliminating the strain caused by these energy-intensive farms, as the national power supply has been unreliable for the past decade.
Lastly, Microsoft is facing the possibility of a multibillion-dollar fine in the European Union if it fails to respond to a request for information by May 27. This threat arises from a request made under the EU’s Digital Services Act regarding Microsoft’s Bing search engine and its associated generative artificial intelligence (AI) services. The European Commission is demanding that Microsoft provide information on the risks of generative AI in Bing. The initial request was sent on May 14 and specifically addresses the risks posed by Bing’s generative AI features, including “Copilot in Bing” and “Image Creator by Designer.”