As the latest twist unfolds for US Crypto Policy, learn about recent moves in the Senate to overturn SEC mistakes via the Crypto Bill, and unpack its bipartisan approval. Furthermore, discover how this new American crypto legislation could be VETO’d by President Biden in sudden intervention.
Surprising many, Congress just took its first definitive step into cryptocurrency regulation with the approval of the Senate crypto bill H.J. Res. 109
The action involved casting a decisive vote, 60-38, to strike down the SEC’s Staff Accounting Bulletin No. 121 (SAB 121), which placed hefty regulatory shackles on financial institutions, potentially stifling their ability to act as custodians for Bitcoin and other cryptocurrencies.
“SAB 21 is a rule under the administrative procedure act, disguised as an accounting guidance. It was published by the SEC staff without the approval of the majority of the commission.” – Senator Cynthia Lummis
With a notable bipartisan nod of approval, even from Democrats like Senate Majority Leader Chuck Schumer, this resolution could be the dawn of a new era for the crypto industry.
With the Senate Crypto Bill Passing, What Now for US Crypto Policy?
SEC Staff Accounting Bulletin No. 121 (SAB 121), endorsed by the House, is at the heart of the legislative debate. This rule requires crypto custodians to classify customer holdings as liabilities, and a stipulation critics say deters banks from offering crypto services.
Senator Cynthia Lummis, a key voice against SAB 121, hailed the Senate’s decision as a victory lap for financial innovation and a direct challenge to the Biden administration’s perceived anti-crypto stance.
This legislative push against SAB 121 is now on the brink of becoming law, pending President Biden’s approval.
“Win for financial innovation and a clear rebuke of the way the Biden admin and Gary Gensler have persecuted crypto,” said Lummis after the bill passed.
Yet, not everyone is singing praises for H.J. Res. 109. Senator Elizabeth Warren raised the alarm on the unique risks of digital assets, such as heightened vulnerability to cyber-attacks, underlining recent security breaches at major crypto exchanges.
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Moreover, President Joe Biden is a potential storm cloud with a veto that could rain on this legislative parade.
JUST IN: 🇺🇸 US Senator Elizabeth Warren urges the Senate to vote NO on legislation that would allow highly regulated financial firms to custody #Bitcoin and crypto. pic.twitter.com/L6NwEVUseN
— Bitcoin Magazine (@BitcoinMagazine) May 16, 2024
As the resolution inches closer to President Biden’s desk, the crypto world waits with bated breath.
The Bottom Line: Will Biden Veto the Senate Crypto Bill?
A presidential veto could halt the resolution’s momentum, upholding the current restrictive stance on cryptocurrencies.
But the story might not end there; an override attempt in Congress could be on the horizon, igniting a legislative showdown that could ripple through Biden’s re-election campaign.
Fox Business journalist Eleanor Terrett highlighted the potential back-to-square-one scenario if the President wields his veto power.
“The Senate has voted to overturn SAB 121… If so, then it’s back to square one,” said Terrett
This resolution could either unlock a crypto-friendly America or just replay the same old song. Either way, the crypto legislation debate is still raging.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
