US Senate Votes to Kill SEC Bitcoin Accounting Policy in a Historical Vote

Both houses of the U.S. Congress have passed a resolution opposing an accounting rule that effectively prevents financial institutions from offering bitcoin custody services. However, it is now likely to be vetoed by the White House.

US Senate Votes to Kill SEC Bitcoin Accounting Policy in a Historical Vote
Source: Joshua Sukoff.
  • In a 60-38 vote, the U.S. Senate joined the House of Representatives on Thursday in seeking to erase the controversial Securities and Exchange Commission (SEC) bitcoin and crypto policy known as Staff Accounting Bulletin No. 121 (SAB 121), which makes it prohibitively expensive for financial institutions to participate in the crypto custody. Even so, President Joe Biden has already vowed to veto the resolution.
  • SAB 121 stipulates that a company holding a customer's crypto assets must record them on its own balance sheet, which could have significant capital implications for banks dealing with bitcoin and 'crypto' clients. Passing of the bill effectively enables highly regulated financial firms to offer custody services for Bitcoin.
"The SEC should never set policy—over banks, no less, an industry they do not regulate—through a staff accounting bulletin. This is nothing more than this administration attempting to skirt the law," Sen. Cynthia Lummis (R., Wyo.) said in a statement.
  • Sen. Elizabeth Warren voiced her objection to the vote on the Senate floor, arguing that it was an inappropriate use of the Congressional Review Act (CRA).
  • Previous week, the Biden Administration issued a statement threatening to veto the resolution if it passes Senate.

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