Bitcoin has been on a tear this year—boosting the prices of ethereum, XRP, and the broader cryptocurrency market— even though traders are bracing for a "huge" price crash.
Bitcoin prices recently fell below $60,000 per bitcoin after peaking at $70,000 in early June, with a billionaire bitcoin buyer recently revealing a major reversal .
Now, as a radical policy plan puts bitcoin on a $16 trillion collision course with gold, a leak of information from the U.S. Securities and Exchange Commission (SEC) has sparked Expectations are that Wall Street will likely venture deeper into the bitcoin and cryptocurrency markets.
Several companies and financial institutions have agreed to terms with the SEC that allow them to bypass controversial cryptocurrency accounting guidance, which essentially prevents banks from holding cryptocurrencies on behalf of customers, an anonymous source told Bloomberg .
SEC Accounting Bulletin No. 121, known as SAB 121, requires banks and other companies that deposit cryptocurrencies to record customers' cryptocurrency holdings as liabilities on the balance sheet. balancing their accounting, making it complicated and expensive.
Wall Street firms have proven to the SEC that they have the technology and processes that would allow customers to reclaim their cryptocurrency as they would any other asset in a bankruptcy, an anonymous source also said with The Block .
This week, the Democratic-controlled House of Representatives voted to uphold President Joe Biden's veto of SAB 121.
"SAB 121 is one of the most egregious examples of the regulatory abuses that defined chairman Gary Gensler's tenure at the [SEC]," said House financial services committee chairman Patrick McHenry, RN. C., said in comments reported by Blockworks.
"It limits consumers' options for safely storing their digital assets, reversing decades of bank custodial practices and increasing concentration risks."
The cryptocurrency industry had hoped that the Republican Party's growing acceptance of bitcoin and cryptocurrency might cause the Democratic Party to drop its general anti-crypto stance.
"President Biden vetoed the first digital asset-specific bill ever passed by the House and Senate," McHenry said. "It has never been clearer; this administration would rather play politics and side with power-hungry bureaucrats than the American people."
In May, Michael Saylor, executive chairman of bitcoin-turned-software company MicroStrategy, called on lawmakers to repeal SAB 121 after the U.S. Senate joined the House in seeking its repeal. SEC's cryptocurrency policy before President Biden's veto.
"Wall Street wants bitcoin, the House wants bitcoin, and now the Senate wants bitcoin too," Saylor posted on X.
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