On May 16, the U.S. Senate voted in favor of repealing SEC Staff Bulletin No. 121 (SAB 121).
A total of 60 senators voted in favor of H.J. Res. 109 passed a resolution to overturn the bulletin, but 38 senators voted against it.
The results demonstrate bipartisan support for repealing the SEC rule. Of the 60 senators who voted in favor of the resolution, there were 11 Democrats, 48 Republicans, and one independent.
Congressman Wiley Nickell commented He said the vote “sends a clear bipartisan message” regarding the SEC's alleged regulatory overreach. he added:
“We never [Congressional Review Act] Unfortunately, it is the only tool left to us to solve this problem. ”
Representative Tom Emmer supported repealing SAB 121. states that Cryptocurrencies are a “policy tug-of-war” between administrators and individuals, he said, adding that a presidential veto “would deprive Americans of opportunity at the expense of the American people.”
Biden likely to veto
On May 8, the Biden administration issued a notice stating that President Joe Biden would veto the resolution if the Senate votes in favor.
The administration warned that overturning SAB 121 could impede the SEC's efforts to protect investors and protect the financial system.
On May 9, the House of Representatives voted 228-182 in favor of the resolution, which passed it to the Senate.
Votes in the Senate and House of Representatives both show that a majority of members are in favor of the resolution. However, the latest Senate vote is not high enough to override the president's veto, which would require a two-thirds majority in both the House and Senate.
SAB controversy
SAB 121 requires financial institutions and businesses that protect customer assets to maintain these assets on their balance sheets.
This breaking news is controversial for various reasons. The American Bankers Association (ABA) believes that SAB 121 will make it cost-prohibitive for banks to act as custodians of spot Bitcoin ETFs.
We also believe that SAB 121 does not distinguish between crypto assets on the public ledger and traditional assets on the permissioned ledger. However, the association wants amendments rather than complete abolition.
Meanwhile, lawmakers have criticized both the bill's content and the SEC's approach to implementing the rule.Patrick McHenry claims SEC was circumvented Rulemaking process with public comment and staff guidance.
