The U.S. House of Representatives, and now the U.S. Senate have voted Yea on the H.J. Res. 109. The resolution is a vote of disapproval of the rule submitted by the U.S. Securities and Exchange Commission (SEC) relating to “Staff Accounting Bulletin No. 121” (SAB 121), published in 2022. The House voted to overturn SAB 121 by a vote of 228-128, and the Senate a vote of 60-38. Both House and Senate votes do not pass the thresholds to override a presidential veto.
Staff Accounting Bulletin. No. 121 raises concerns from the crypto industry that the rule will bar highly regulated financial institutions, such as banks, from being custodians of crypto assets, such as Bitcoin. The rule seems counterintuitive to the idea of safeguarding citizens’ rights in securing their cryptocurrencies and Bitcoin.
Senator Cynthia Lummis (R-WY) writes on X, “The Senate passing a CRA overturning SAB 121 is a win for financial innovation and a clear rebuke of the way the Biden admin and Gary Gensler have persecuted crypto. It also marks the 1st time Congress has passed standalone crypto legislation. We are just getting started.”
The Senate passing a CRA overturning SAB 121 is a win for financial innovation and a clear rebuke of the way the Biden admin and Gary Gensler have persecuted crypto.
It also marks the 1st time Congress has passed standalone crypto legislation.
We are just getting started.
— Senator Cynthia Lummis (@SenLummis) May 16, 2024
President Joe Biden intends to veto the resolution. The White House states, “The Administration strongly opposes passage of H.J. Res. 109, which would disrupt the Securities and Exchange Commission’s (SEC) work to protect investors in crypto-asset markets and to safeguard the broader financial system.”