The U.S. Senate voted 60 to 38 to overturn the U.S. Securities and Exchange Commission’s (SEC) controversial crypto asset accounting rules, The Block reported. The SEC's Accountant's Bulletin 121 (SAB 121), issued in 2022, requires companies to record their holdings of crypto-assets on their own balance sheets, and companies that have custody of cryptocurrencies must record their customers' crypto-currency holdings on their balance sheets. The amount is recorded as a liability.

The rule has sparked controversy over the past year amid concerns in the cryptocurrency industry that it is too stringent and could prevent banks from custody of digital assets. Last week, the House also voted 228 to 182 in favor of overturning SAB 121, with a majority of Republicans supporting the measure, as well as 21 Democrats.

However, all this may be in vain. Since the approval vote in the Senate and House of Representatives does not reach the two-thirds threshold and is not enough to override the president's veto, the final outcome will depend on Biden. However, the White House stated in an Executive Policy Statement released last week that President Biden would veto the vote to overturn SAB 121. The White House stated:

“Restricting the SEC’s ability to maintain a comprehensive and effective financial regulatory framework for crypto-assets will introduce significant financial instability and market uncertainty.”

Many in the industry have criticized the Biden administration for convoying SAB 121. Cody Carbone, vice president of policy at the Digital Commerce Chamber, said in an interview:

"I hope the president will understand that the bipartisan support for this resolution is not a criticism of the administration, but a consensus that no independent regulator should be above the law and should be above the law when it comes to protecting consumers. Take precedence over personal stereotypes about certain unpopular industries.”

This article The U.S. Senate and House of Representatives favored overturning the SEC’s controversial cryptocurrency regulations, and the White House said: The president will veto the vote results first appeared on Zombit.