The United States Senate has passed a resolution calling for the Securities and Exchange Commission (SEC) to repeal a crypto rule.
On May 16, the Senate voted 60 to 38 in favor of H.J.Res. 109, which seeks to nullify the SEC’s Staff Accounting Bulletin No. 121 (SAB 121).
This rule requires banks to list customers' digital assets on their balance sheets, a mandate criticized for hindering innovation in the crypto sector.
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The Blockchain Association emphasized that the 60-38 Senate vote clearly demonstrates bipartisan disapproval of the SEC rule from both houses of Congress.
The vote, as noted by Senator Cynthia Lummis, marked the first time standalone crypto legislation was passed by Congress.
Despite the Senate's approval, President Joe Biden has indicated he will veto the resolution, arguing it is necessary to safeguard and manage future crypto-asset-related issues. If he follows through, the resolution will return to Congress, needing a two-thirds majority to pass again.
The Blockchain Association pointed out that a presidential veto would ignore voters' increasing awareness of crypto's importance.
Representative Mike Flood, one of the resolution's sponsors, also commented about the veto on X:
It is clear there is overwhelming opposition to SAB 121, and I urge <Joe Biden> to reconsider his previous statement of intent to veto the resolution.
However, the White House has not yet issued a statement regarding the resolution's passage.
The Senate's vote highlights a growing legislative push to support the crypto industry. This resolution, if enacted, could mark a shift in how digital assets are treated by financial institutions and regulators in the United States.
As Uniswap Labs CEO Hayden Adams implied, it is particularly important for regulators to reevaluate their stance on crypto given the upcoming presidential election. He specifically addressed Joe Biden, noting that allowing the SEC to take strict measures against crypto entities may push away important voters.
