US Senate Passes Measure to Overturn a SEC Crypto Rule

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The US Senate passed a measure on Thursday to overturn a Securities and Exchange Commission (SEC) bulletin that sets specific accounting standards for firms that custody cryptocurrencies. The measure will now proceed to President Joe Biden’s desk, where it is expected to face a veto.

The Senate voted 60 to 38, falling short of the necessary votes to override a presidential veto. Notably, several Democrats, including Senate Majority Leader Chuck Schumer (D-N.Y.), supported the measure. Among those voting to repeal the bulletin were also Senators Cory Booker (D-N.J.) and Jon Tester (D-Mont.).

Last week, the House of Representatives passed the same measure to overturn SAB 121 by a vote of 228-182. This vote saw predominantly Republican support, along with 21 Democrats.

However, the vote count is below the two-thirds majority required in the House to override a presidential veto.

The SEC Staff Accounting Bulletin, known as SAB 121, was first issued in 2022. It has sparked controversy in the crypto industry due to concerns that it might hinder banks from safeguarding digital assets. The bulletin mandates that firms holding crypto on behalf of customers must record these holdings as liabilities on their balance sheets.