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SEC's crypto rule overturned by US Senate decision

Senate's 60-38 vote reflects bipartisan disapproval of SEC's crypto rule.

Golden gavel represents Senate crypto resolution.

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The US Senate has voted 60 to 38 to pass H.J.Res. 109 this Thursday, effectively calling for the Securities and Exchange Commission (SEC) to withdraw Staff Accounting Bulletin No. 121 (SAB 121). This bill might open the path for regulated financial institutions to hold Bitcoin and crypto.

The SEC rule mandates that financial institutions must include customers’ digital assets on their balance sheets, with requisite capital reserves. The Senate’s action reflects a significant pushback against what many perceive as a regulatory overreach that could hamper innovation in the crypto sector.

Talking to her colleagues, Senator Cynthia Lummis stated that SEC’s Chairman Gary Gensler is “committed to an ill-informed and unworkable fight against the digital asset industry at any cost.”

“Unfortunately, SAB 121 does nothing to protect consumers. Nothing to protect consumers. It hurts them. I hope that all of my colleagues will recognize this and join me in voting in support of House Joint Resolution 109,” added the Senator. 

Moreover, Lummis went to X to highlight that this is the first time Congress has passed a standalone crypto legislation, and that the Senate’s decision is a “clear rebuke of the way the Biden admin and Gary Gensler have persecuted crypto.”

Despite the Senate’s resolution, President Joe Biden has expressed intentions to veto the bill, citing the need to protect investors and the financial system.

Should a presidential veto occur, Congress would need a two-thirds majority to override it.

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