US Senate Votes to Overturn SEC's Controversial Crypto Rules — Biden's Veto Threat Looms

The U.S. Senate has voted to overturn the Securities and Exchange Commission (SEC)’s controversial SAB 121, which imposes regulatory burdens on digital asset custodians. The resolution also passed in the House and now faces a veto threat from President Joe Biden. Last week, the White House issued a statement: “If the President were presented with H.J. Res. 109, he would veto it.”

Senate Repeals SEC’s SAB 121 Crypto Regulation

The U.S. Senate passed H.J. Res. 109 on Thursday to repeal the U.S. Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin No. 121 (SAB 121). The resolution, which garnered 60 votes in favor and 38 against, aims to eliminate regulatory burdens on financial institutions and firms custodians of digital assets.

The U.S. House of Representatives has also passed H.J. Res. 109. The House Financial Services Committee explained: “H.J.Res. 109 overturns the SEC’s SAB 121 under the Congressional Review Act (CRA). By overturning SAB 121, the bipartisan resolution ensures consumers are protected by removing roadblocks that prevent highly regulated financial institutions and firms from acting as custodians of digital assets.”

However, the White House has announced that President Joe Biden would veto the resolution if presented to him.

U.S. Senator Cynthia Lummis (R-WY), who called SAB 121 a “misguided rule” on digital assets, shared on social media platform X after the vote:

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.

She added: “Congress did a thing. That does not happen all that often. Especially with divided chambers. NOW: Speak up and let the White House know. The president is ALL that stands in the way of this resolution. If he makes good on his veto threat, take note.”

What do you think about the Senate’s decision to overturn SEC’s SAB 121? Let us know in the comments section below. #Write2Earn