Breaking: Senate Overwhelmingly Votes To Overturn The SEC’s SAB121
The U.S. Senate voted on Thursday to formally disapprove the Securities and Exchange Commission’s (SEC) controversial staff accounting bulletin SAB121, which will now go to President Joe Biden’s desk.
Thursday’s vote garnered considerable bipartisan support, with Democratic Senators Chuck Schumer (NY), Cory Booker (NJ), and Kirsten Gillibrand (NY) voting in favor of the effective “reversal” of the stringent digital asset guidelines.
The Senate passing a CRA overturning SAB 121 is a win for financial innovation and a clear rebuke of the way the Biden admin and Gary Gensler have persecuted crypto.
It also marks the 1st time Congress has passed standalone crypto legislation.
We are just getting started.
— Senator Cynthia Lummis (@SenLummis) May 16, 2024
Championed by Senator Cynthia Lummis (R-WY), the vote comes just a little over a week after the House voted on a companion bill brought forth by Representatives Mike Flood (R-NE) and Wiley Nickel (D-NC).
“SAB 121 sets a disturbing precedent and is not the appropriate vehicle to promulgate accounting guidance for digital asset custodians,” Flood said in testimony earlier this month.
The resolution is now headed to President Joe Biden’s desk, though the legislation’s success seems grim following a May 8 letter from the White House saying Biden would veto it.
“Limiting the SEC’s ability to maintain a comprehensive and effective financial regulatory framework for crypto-assets would introduce substantial financial instability and market uncertainty,” the letter read.
The SEC claims SAB121 is meant to safeguard digital asset use, though crypto-friendly lawmakers have pushed back against the federal agency’s rhetoric.
Critics argue that capital requirements on financial institutions
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