Senate overturns SEC rule on cryptocurrencies, decision awaits Biden

The US Senate has voted to overturn Staff Accounting Bulletin 121 (SAB 121) in a bipartisan step that will take into account banks’ activities involving cryptocurrencies. This resolution was favored with a 60-vote majority by both parties in Congress, which represented enormous dissatisfaction on both sides of the aisle.

Source: senate.gov

The passage of this Congressional Review Act (CRA) resolution marks a milestone as it is the first standalone cryptocurrency legislation passed by Congress. The resolution now lands on President Biden’s desk, where a potential veto looms.

The CRA resolution passed at this level of Congress is truly a first step as it is the first cryptocurrency-focused legislation passed by Congress. The resolution now passes to the President’s desk awaiting a possible veto.

Regarding cryptocurrency regulation, Senator Cynthia Lummis (R-WY) noted that this particular vote was a success for financial innovation and clearly stated that under SEC Chairman Gary Gensler’s approach, l he Biden administration should step aside.

The topic has attracted enormous attention, especially from young people who are very active in cryptocurrency trading. A survey by Digital Currency Group (DCG) showed that 48% of voters in swing states do not support candidates who oppose cryptocurrency campaigns. This reveals a growing political influence of cryptocurrency supporters over the entire voting population in some particular states.

Opponents of SAB 121 argue that the rule is too harsh on consumers as it limits the reach of digital assets into the financial sphere by preventing banks from engaging in such assets.

Congress has clearly shown support, attention now turns to the Biden administration. They hope the president will listen to members of the majority and ultimately sign the repeal of SAB 121.

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