U.S. Senate Votes for Annulment of SEC Rule Impacting Crypto-Firms, Presidential Veto Looms
Summary:
The U.S. Senate has recently passed a resolution with a 60 to 38 majority vote, urging the Securities and Exchange Commission (SEC) to revoke a rule adversely affecting financial institutions working with cryptocurrency companies. President Joe Biden has expressed his intentions to veto the bill to protect crypto-asset market investors. The potential veto would send the legislation back to Congress, where it would need a two-thirds majority vote to pass. More details are awaited as the story develops.
In a recent development, the U.S. Senate, with a notable majority, endorsed a mutual resolution calling upon the Securities and Exchange Commission (SEC) to annul a specific regulation that is impacting financial establishments dealing with cryptocurrency companies. Senators passed H.J.Res. 109 with 60 to 38 votes on May 16. This resolution aims to invalidate the SEC's Staff Accounting Bulletin No. 121, which mandates banks to include their clientele's digital assets in their balance sheet and hold corresponding capital — a mandate that has faced heavy criticism from numerous lawmakers and industry experts as it hampers innovation.
As per the crypto advocacy group, Blockchain Association, the impressive count of 60 'yeas' in the Senate's vote set a robust message that both Congressional houses, irrespective of their political alignments, do not support this rule. This announcement was made in a May 16 X post.
Presidential dissent towards the resolution has also come up recently. Ahead of the resolution winning approval from the U.S. House of Representatives on May 8, President Joe Biden announced his intentions to overturn the bill as he seeks to ensure the protection of crypto-asset market investors and secure the wider financial system. If Biden ends up using his presidential veto against the legislation, it will land back in Congress and necessitate a two-thirds majority vote for its reacceptance.
According to the Blockchain Association, the potential of a presidential veto fails to acknowledge the increasing understanding among the population, especially the young, regarding cryptocurrency and the need for our elected representatives to consider it.
This news is unfolding, and more details will be shared as they surface.
Published At
5/16/2024 8:50:48 PM
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