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17/05/24
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Lawmakers Pass Resolution to Overturn SEC’s Proposed Crypto Rule on Banks
On May 16, most U.S. lawmakers in the Senate voted to pass H.J.Res. 109, a resolution to nullify the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin No. 121. The joint resolution does not want the SEC to go ahead with the implementation of a rule that will affect financial institutions doing business with cryptocurrency companies.
Sixty (60) senators voted to pass the resolution against 38. According to the rule proposed by the SEC, banks will be required to keep digital assets of customers on their balance sheets and maintain capital against them. Crypto market participants as well as pro-crypto organizations consider the proposed rule as a measure to stifle innovation.
“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,” said Blockchain Association via X.
Last week, President Joe Biden revealed his plan to veto the bill if it gets to his table, to ensure that those who invest in the crypto space are protected as well as to safeguard the broader financial system.
“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,” said the Blockchain Association.
Senator Cynthia Lummis said this was the first time this session of Congress passed “standalone crypto legislation.” “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,” said Representative Mike Flood, the resolution’s sponsor.
Lawmakers are also working on the Financial Innovation and Technology for the 21st Century Act to clarify the SEC’s and Commodity Futures Trading Commission’s roles in terms of digital asset regulation.
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