HomeCrypto NewsAnti-crypto war: Senate opposes Gary Gensler's policy

Anti-crypto war: Senate opposes Gary Gensler’s policy

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Yes but no ! The United States is currently experiencing a real vendetta against the cryptocurrency sector. A fight mainly fueled by SEC boss Gary Gensler. And the latter exasperates even in the ranks of its own commissioners. Because the recipe consists of not issuing clear rules and then reproaching local actors for not respecting them. At the same time, unfair obligations are put in place regarding cryptocurrencies, which do not exist for other asset classes. This is for example the case of the accounting standard SAB 121 imposed on companies by the regulatory body. And the Senate just vote against

The Senate invalidates the SAB 12 accounting standard

There repressive dynamic set up by the current head of the SEC, Gary Gensler, is no longer really even a political camp war. In fact, these are now the two main parties which jointly oppose his incensed cabal.

And the last episode of burned crypto policy concerns the accounting standard entitled Staff Accounting Bulletin No. 121 (SAB 121). That is to say the obligation – enacted since 2022 – for companies to record their clients’ crypto assets as a liability on their balance sheet.

So why this sudden outcry? Probably because Recent Approval of Spot Bitcoin ETFs Opens New Opportunities, heavily penalized by this law. Even more so if we consider that this obligation does not concern more traditional assetssuch as stocks.

The Senate invalidates the SAB 12 accounting standard
The anti-crypto policy led by Gary Gensler achieves the feat of exasperating even his camp

This is why the Senate is reviewing this copy. And a vote has just proposed the invalidation of this lawwith 60 votes to 38. Interestingly, this plan comes from a bipartisan coalition including some Democrats in this anti-SEC revolt.

“I hope that the president [Gary Gensler] views the bipartisan support for this resolution not as a rebuke of the administration, but as a consensus that no independent regulator is above the law and that consumer protection should always trump personal vendettas against a disadvantaged industry. »

Cody Carbonevice president of policy at the Chamber of Digital Commerce

But will this be enough?

A decisive vote, which demonstrates to what extent this accounting framework – and ultimately many other anti-crypto projects – poses a serious problem in the United States. Even more so if we consider Gary Gensler’s ability to ignore the requests for clarifications demanded by local actors of the cryptocurrency sector.

But the path of this anti-SAB 121 slingshot is still far from finished. Because the rejection formulated by the Senate can be invalidated by the current President of the United States, Joe Biden, able to veto it. And that’s exactly what he threatened to do in an “administrative policy statement” released last week.

“Limiting the SEC’s ability to maintain a comprehensive and effective financial regulatory framework for crypto-assets would introduce financial instability and substantial market uncertainty. »

White House

There war has begun. And, according to the latest declarations from the Senate, this SAB 121 accounting framework falls within the scope of Congressional Review Act. An obligation visibly circumvented by the SEC. Which would mean that the recent invalidation voted by the Senate could immediately and permanently cancel this text of law. And, at the same time, put the SEC in the inability to issue similar rules. Continued in the next episode…

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