The U.S. Senate on Thursday joined the House in calling for the removal of the controversial Securities and Exchange Commission (SEC) crypto policy known as Staff Accounting Bulletin No. 121, but President Joe Biden vetoed the resolution. He declared that he would exercise the right.
Although the Senate voted 60-38 to overturn the policy, commonly referred to as SAB 121, the crypto industry may not be breathing a sigh of relief over the initiative’s restrictions on banking operations. Mr. Biden said: It argued that removing the rules in this way would disrupt “efforts to protect investors in crypto markets and protect the broader financial system.”
More than a dozen Democrats, along with a majority of Republicans, voted in favor of the resolution, well exceeding the simple majority needed for passage. However, the resolution did not receive enough votes to be vetoed.
Even Senate Majority Leader Chuck Schumer of New York, along with other Democratic leaders, pushed back against his party’s leadership in opposing the SEC’s cryptocurrency efforts.
Sen. Cynthia Lummis (R-Wyo.), who sponsored the resolution in the Senate, called the bulletin a “disaster” that does not protect consumers.
“This is a victory for financial innovation, a clear rebuke of the Biden administration and Speaker Gary Gensler’s handling of crypto assets, and the first time that both houses of Congress have passed separate crypto bills,” he said in a statement. ” he said.
SAB 121, issued by the agency in 2022, states that companies that store customers’ virtual currencies should record virtual currencies on their balance sheets; could have a significant impact on capital. Republican lawmakers have accused the SEC of enacting the policy without going through the necessary regulatory process, and the Government Accountability Office agrees, pointing out how the regulator is passing what should be rules instead of staff guidance. It was determined that there was an error in handling the matter.
Rep. Kyle Flood (R-Nebraska), one of the resolution’s authors, called the vote a “groundbreaking result” and noted the bipartisan support.
“It is clear that there is overwhelming opposition to SAB 121, and I urge President Joe Biden to reconsider his previous statement that he would veto the resolution. , the President should sign my resolution to put the United States on a growth path for “our digital financial future,” he said.
They tried to kill this policy through the Congressional Review Act, so if the reversal was successful, it would legally mean that the SEC could not pursue similar policies in the future. It has been suggested that there may be restrictions on the ability to ensure appropriate guardrails and address future issues related to crypto assets, including financial stability; ”
Rep. Wiley Nickell (North Carolina), a co-sponsor of the House resolution, said the House “should not have relied” on the Congressional Review Act and ordered the SEC to withdraw the bulletin before it was published on the resolution. He repeatedly stated that he would like to Biden’s desk.
“Today’s vote in the Senate to repeal SAB 121 sends a clear bipartisan message: Gary Gensler and the SEC are deliberately circumventing the statutory rulemaking process and overstepping their regulatory authority. “Congress cannot remain silent and watch.”
This is the first time Congress has addressed an issue focused on the crypto industry, with the exception of previous crypto tax provisions that were included in the infrastructure law despite industry resistance. It was intended to support.
An SEC spokesperson did not respond to a request for comment.
Updated (May 16, 2024, 17:20 UTC): Add the member’s remarks.
