The U.S. Senate has formally voted to overturn a U.S. Securities and Exchange Commission (SEC) rule that prohibits regulated financial companies from holding Bitcoin and other virtual currencies. The law, H.J. Res. 109, was passed by the U.S. House of Representatives last week.
The decision authorizes the revocation of the SEC's Staff Accounting Bulletin (SAB) No. 121, and subsequent legislative action against the regulator received bipartisan support. A joint resolution revoking the previous SEC rules will now reach the president's desk.
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US Senate passes bill allowing regulated companies to hold Bitcoin
Over the past few years, digital asset markets and the SEC have had a contentious relationship. A large part of this is due to the latter's efforts to regulate through enforcement. As a result, the industry is mired in ongoing lawsuits and legal battles with authorities.
Now, the U.S. government has taken action against one of the agency's most disapproved regulations. Specifically, the U.S. Senate has formally voted to overturn SEC rules that prohibit regulated financial companies from holding Bitcoin and other virtual currencies.
The Senate president voted Thursday to repeal the SEC rule, which had been in effect for two years. Additionally, the decision to rescind the SEC guidelines was passed with bipartisan support. In fact, the 60-38 vote was restored in the Senate, which is now controlled by Democrats.
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The decision was made after the Republican-controlled U.S. House of Representatives passed the bill on May 8. The Legislature's challenge to the SEC rule passed by a vote of 228-182, but now faces a final test on the desk of U.S. President Joe Biden.
At this point, the White House has indicated that the bill is likely to be vetoed, according to reports. But the overwhelming dissatisfaction with the guidelines issued by the SEC is evident in the reaction policymakers received in the House and Senate.
