According to Blockworks, the U.S. Senate passed Joint Resolution No. 109 on Thursday, which aims to overturn the Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) 121. The bill is now submitted to President Joe Biden. The White House previously stated that Biden would exercise his veto power once the resolution is passed in the Senate.
Proposed in March 2022 and effective the following month, SAB 121 requires digital asset custodians to report liabilities and “corresponding assets” on their balance sheets for all cryptocurrencies in custody.
SEC staff said the approach is intended to guard against “significant risks and uncertainties associated with protecting crypto assets.”