THE US CONGRESS IS ABOUT TO OVERTURN THE RULE OF 100% CRYPTO ASSET RESERVATION ON BANKS BALANCE SHEETS
The U.S. Senate has passed by a majority vote a bill to repeal the Securities and Exchange Commission's SAB 121 directive, which shut down the ability of U.S. banks to act as custodial custodians of their customers' digital assets.
In 2022, the Securities and Exchange Commission (SEC) amended SAB 121 to require financial institutions that provide cryptocurrency custody services to customers to establish a 100 percent reserve for potential losses. The SEC required banks to account for this type of asset as a liability to customers.
On May 8, during the voting stage of the document in the U.S. House of Representatives, President Joe Biden promised to veto the bill to "protect investors in cryptoasset markets and the U.S. financial system as a whole." If the president vetoes it, the document will return to Congress for a second debate. Overriding the veto would require the support of a two-thirds majority.
In early May, former US President Donald Trump said at a meeting with his supporters at the Mar-a-Lago residence in Palm Beach that the current head of the White House has very little idea of what cryptocurrencies are.
