HomeCrypto NewsUS Senate defies Biden and votes to reverse controversial SEC crypto measure

US Senate defies Biden and votes to reverse controversial SEC crypto measure

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By Hannah Perez

The US Senate echoed the House of Representatives in voting to overturn controversial SEC guidance. The Biden administration disagrees, and he has already said he would veto the bill.

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  • US Lawmakers Agree on Repealing Controversial SEC Guidance
  • The Senate joined the House of Representatives to approve the initiative despite Biden’s warning
  • The SEC published a bulletin that prevents banks from safeguarding cryptocurrencies
  • President Biden sided with the SEC and advanced his intention to veto the bill

United States senators have voted to reverse controversial guidance from the Securities and Exchange Commission (SEC), defying the warning from Joe Biden’s administration.

The upper house of the United States Congress approved a legislative project that nullifies Special Accounting Bulletin 121 (SAB 121) issued by the SEC, which practically prevents the country’s banks from owning cryptocurrencies such as Bitcoin.

The measure achieved 60 votes in favor and 38 against, with a dozen Democrats and the majority of Republicans backing the initiative, several news outlets reported. The vote in favor in the Senate comes after the resolution won approval in the House of Representatives, the lower house of Congress, last week.

However, endorsement by legislative bodies does not guarantee final approval. Last Thursday, just before the vote in the House of Representatives, President Joe Biden conveyed his intention to veto the project.

In a previous statement, the White House argued that approving the measure would mean disrupting the SEC’s work to protect investors. “Limit the ability of the SEC to maintain a comprehensive and effective financial regulatory framework for crypto assets, would introduce substantial financial instability and market uncertainty“, they said.

The controversial SEC guidance

Issued in 2022 by the SEC, controversial bulletin SAB 121 requires companies that custody cryptocurrencies to record client holdings as liabilities on their balance sheets. The measure has generated controversy because it practically prevents banks from holding cryptocurrencies on behalf of clients, treating this type of assets differently.

The House approved the initiative to repeal SAB 121 by 228 votes in favor and 182 against last week, with a majority of Republicans backing the measure, as well as 21 Democrats.

However, in both cases, The resolution did not receive the number of votes necessary to override a presidential veto.. If a bill is vetoed by the executive branch, the proposal can only become law if it is approved with a two-thirds majority vote of both legislative chambers. And this was not the case.

Bipartisan consensus on a cryptocurrency measure

Republican lawmakers criticized the SEC for instituting a policy without going through the necessary regulatory process, as detailed CoinDeskalthough some hope the result will not be interpreted as a challenge to the Biden administration, but instead as a bipartisan consensus that no agency should be above the law.

I hope the President views bipartisan support for this Resolution not as a rebuke to the administration, but as a consensus that no independent regulator is above the law and that consumer protection must always take precedence over personal vendettas against an industry. disadvantaged“he commented Cody Carbone, vice president of policy at the Chamber of Digital Commerce, in a statement to The Block. He added that a veto would be “absurd“.

The debate appears to have particular relevance in the current context in which US regulators implement severe enforcement actions against cryptocurrency companies. If Biden does not oppose and the bulletin is revoked (which seems unlikely), it would mean that – by law – the SEC could not apply similar policies in the future.

Additionally, this stands out as one of the few times that the US Congress addresses an issue that focuses on the cryptocurrency industry, and that is in some way intended to help the sector, as noted CoinDesk.


Article by Hannah Estefanía Pérez / DailyBitcoin

Picture of Unsplash

WARNING: This is an informative article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that investments in cryptoassets are not regulated in some countries. They may not be suitable for retail investors as the entire amount invested could be lost. Check the laws of your country before investing.

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