A resolution has been passed by a majority of United States Senators, urging the Securities and Exchange Commission (SEC) to revoke a rule that impacts financial institutions involved in cryptocurrency businesses.
With a vote of 60 to 38 on May 16, the Senate approved H.J.Res. 109, a resolution that nullifies the SEC’s Staff Accounting Bulletin No. 121. The rule requires banks to include customers’ digital assets on their balance sheets and maintain capital against them, a measure that has been criticized by many lawmakers and industry leaders for hindering innovation.
“The Senate vote, with an impressive 60 ‘Yeas,’ sends a powerful message that both chambers of Congress, regardless of political affiliation, 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 announced his intention to veto the bill in order to “protect investors in crypto-asset markets and safeguard the broader financial system.” If the President vetoes the legislation, it will be returned to Congress and will require a two-thirds majority vote to pass again.
“The possibility of a presidential veto overlooks the fact that there is an increasing awareness among the voting public, especially young people, that crypto is something that our elected officials should be concerned about,” said the Blockchain Association.
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The vote represented an unusual bipartisan move by the U.S. Senate, with a 51-49 split in favor of Democrats. According to Senator Cynthia Lummis, it was the first time during this session of Congress that “standalone crypto legislation” was approved. The White House did not release an immediate 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 statement of intent to veto the resolution,” stated Representative Mike Flood, the sponsor of the resolution.
This joint resolution could set a precedent for another crypto bill, the Financial Innovation and Technology for the 21st Century Act. The legislation clarifies the roles of the SEC and Commodity Futures Trading Commission in regulating digital assets. It passed the committee in July 2023 and is expected to be introduced for a floor vote in the House in May.
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