In a vote of 60 to 38, United States senators have approved H.J. Res. 109, a resolution that nullifies the U.S. Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin No. 121. This rule requires banks to include customers’ digital assets on their balance sheets and maintain capital against them, a measure that has been heavily criticized by lawmakers and industry leaders for stifling innovation. The Blockchain Association, a crypto advocacy group, stated that the overwhelming support for the resolution in the Senate sends a clear message that both houses of Congress disapprove of this rule.
However, before the resolution can become law, it must also pass in the U.S. House of Representatives. President Joe Biden has expressed his intention to veto the bill in order to protect investors in the crypto-asset markets and safeguard the broader financial system. Nevertheless, Perianne Boring, 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 strategy and stance. According to her, the tide is turning in favor of crypto in Washington.
The Biden administration may face pressure from not only the political sphere but also the crypto community and other sectors. The American Bankers Association has openly urged President Biden to quickly sign the resolution into law to protect American consumers.
In other news, the State of Wisconsin Investment Board (SWIB) has invested $164 million in spot Bitcoin (BTC) exchange-traded funds (ETFs) offered by Grayscale and BlackRock. The SWIB, responsible for managing Wisconsin’s state trust funds, revealed 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. These investments are worth approximately $100 million and $64 million, respectively. The SWIB manages over $156 billion in assets, with nearly half allocated to public equity investments. It also holds shares 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 measure aims to regulate excessive energy consumption and ensure a stable power supply for the population. According to Venezuela’s National Association of Cryptocurrencies, crypto mining is now prohibited in the country. This decision follows a recent crackdown that involved the seizure of 2,000 cryptocurrency mining devices as part of an anti-corruption initiative. The ministry emphasizes the need to provide efficient and reliable electrical service across Venezuela by eliminating the strain caused by these energy-intensive farms.
Lastly, Microsoft could face a multibillion-dollar fine in the European Union if it fails to respond to a request for information by May 27. The threat stems from a request made under the EU’s Digital Services Act regarding Microsoft’s Bing search engine and its generative artificial intelligence (AI) services. The European Commission is specifically seeking information on the risks associated with Bing’s generative AI features, including “Copilot in Bing” and “Image Creator by Designer.” Failure to comply could result in a fine of up to 1% of Microsoft’s annual revenue in the EU.