US Senate Passes Bill to Overturn SEC Crypto Rule

The US Senate has recently passed legislation H.J.Res. 109, which aims to overturn the SEC’s Staff Accounting Bulletin (SAB) No. 121, a regulation that prevents highly regulated financial firms from acting as custodians for Bitcoin and other cryptocurrencies.

The legislation passed with a bipartisan vote of 60 to 38, demonstrating significant support for the measure. Having already passed the House last week, the resolution seeks to dismantle SAB 121.

This bulletin imposes stringent restrictions on financial institutions, effectively barring them from providing custody services for digital assets like Bitcoin.

H.J.Res. 109, under the Congressional Review Act, aims to remove these restrictions, thereby enabling highly regulated financial firms to offer such custody services. However, the White House has made its position clear on this legislation.

A recent statement indicated that President Biden would veto the bill if it reaches his desk.