📰 The US Senate has taken a significant step by voting to pass H.J. Res 109, a resolution to overturn the SEC’s controversial Staff Accounting Bulletin No. 121 (SAB 121).📰

The Senate’s 60-38 vote follows the House of Representatives’ approval. This outcome reflects bipartisan support against the SEC’s crypto policy.

SAB 121, introduced in March 2022, requires financial institutions to list customers’ digital assets on their balance sheets. Critics argue this mandate creates substantial operational and financial burdens for firms handling cryptocurrencies. The policy has faced opposition for potentially exposing customers’ assets to risks in bankruptcy situations.

Senator Cynthia Lummis, a vocal pro-crypto advocate, spearheaded the resolution’s passage. During the hearing, she emphasized the dangers of SAB 121, explaining that placing customers’ assets on institutional balance sheets could jeopardize those assets during bankruptcies.

After the vote, Lummis expressed satisfaction on social media. She highlights the Senate’s decision as a victory for financial innovation and a rebuke of the current administration’s approach to crypto regulation.

The crypto community celebrated the Senate’s decision. Michael Saylor, founder of MicroStrategy and a well-known Bitcoin advocate, expressed his excitement on X. He emphasizes broad support for Bitcoin.

Despite the resolution’s success in Congress, it did not secure enough votes to be veto-proof. President Joe Biden has vowed to veto the resolution. His administration argues that overturning SAB 121 would weaken the SEC’s ability to protect investors and the financial system from crypto-related risks. However, lawmakers like Representative Mike Flood, who sponsored the resolution, continue to urge the president to reconsider.