Lawmakers approve legislation that overturns a recent SEC decision on how banks work with crypto
A joint resolution recently passed by the US Senate calls for the US Securities and Exchange Commission (SEC) to overturn restrictions on financial institutions conducting business with cryptocurrency firms.
US Senators passed H.J. Res. 109 by a 60-38 vote on May 16, which would repeal the SEC’s Staff Accounting Bulletin No. 121. The rule requires banking institutions to include clients’ digital holdings and the capital held against them on their balance sheets. Many industry executives and legislators have condemned the regulation as suppressing innovation.
2/ The tally, a stunning 60 “Yeas” in the Senate vote, sends a strong signal that both houses of Congress, across the political divide, clearly disapprove of this rule.
— Blockchain Association (@BlockchainAssn) May 16, 2024
In a May 16 X post, the Blockchain Association said, “The tally, a stunning 60 ‘Yeas’ in the Senate vote, sends a strong signal that both houses of Congress, across the political divide, clearly disapprove of this rule.”
President Joe Biden said on May 8 that he planned to veto the resolution to “protect investors in crypto-asset markets and to safeguard the broader financial system.” If the President fails to sign the bill, it will go back to Congress, where it must receive a two-thirds majority vote to pass.
“The threat of a presidential veto denies the fact that there is a growing awareness among the voting public, particularly young people, that crypto is something our elected officials should care about,” added the Blockchain Association.
Representative Mike Flood, the bill’s sponsor, said, “It is clear there is overwhelming opposition to SAB 121, and I urge [President Biden] to reconsider his previous statement of intent to veto the resolution.”
The current resolution could be the forerunner of another crypto bill. The Financial Innovation and Technology for the 21st Century Act defines the SEC and the Commodity Futures Trading Commission’s function in digital asset regulation. The proposal passed committee last July and should be up for a vote in the House later this month.
