The Senate is likely to pass the House bill rejecting SEC encryption rules.

Senate on May 16 Vote for the House resolution to overturn Securities and Exchange Commission (SEC) Staff Accounting Disclosure 121 (SAB 121).

This board has been criticized for its approach: How should companies account for their cryptocurrency assets?

Did you know?

Do you want to become smarter and richer with cryptocurrency?

Subscribe – We post new cryptocurrency explainer videos every week!

SAB 121 was created to guide businesses on accounting for cryptocurrency assets. Directs its inclusion in the balance sheet. But critics argue that this is it. Prevents major custodians and companies from holding cryptocurrency assets on behalf of their customers.

The House recently voted to reject this guidance. Submit the resolution to the Senate. If the Senate passes the resolution and President Joe Biden signs it, SAB 121 would be invalidated and the SEC would be prohibited from issuing similar guidance in the future.

Co-sponsor of the resolution Representative Wiley Nickel previously reached out to SEC Chairman Gary Gensler to request a conversation about SAB 121, but did not receive a response. In his letter, Nickel They called for the repeal of SAB 121 to protect investors, strengthen financial system stability, and preserve Congress’s regulatory role. He wrote:

Repealing SAB121 before it passes the Senate, allowing for custodial banking of digital assets, would be a positive step toward a balanced regulatory approach to cryptocurrencies.

Senator Kirsten Gillibrand also expressed support for the resolution. Point out that there are rules. Issued without sufficient consultation They reported to regulators or Congress and lacked a formal notice and comment period. She claimed:

imposes accounting approaches that deviate from established standards, forcing financial institutions to treat their customers’ digital assets as their own. This limits consumer choice and results in lower or lower levels of consumer protection in the event of bankruptcy.

which The White House threatened to veto the resolution. It purports to reflect the views of the SEC staff. The veto statement warned: The resolution could hinder the SEC’s ability to implement safeguards and manage future cryptocurrency asset-related matters.

Despite the threat of a veto, the resolution received full support from the National Assembly, Twenty-one Democratic lawmakers and most Republicans voted in favor. Representative Mike Flood, another of the resolution’s sponsors, expressed optimism about the Senate vote:

We expect it to pass the Senate this week, and I think it’s getting the SEC’s attention that we’re serious.

Ron Hammond, Director of Government Relations at the Blockchain Association, also emphasized: Bipartisan support for the resolution expected Acknowledging the looming threat of a presidential veto. He said:

We recommend that the veto be revisited and the harmful anti-cryptocurrency provisions repealed.

While the White House’s veto threat remains an obstacle, bipartisan support in Congress suggests strong opposition to the SEC’s current position on cryptocurrency regulation.

This stance has been signaled by legal actions taken against various crypto companies, including Robinhood and Ripple, for securities violations.