The U.S. Senate has voted to overturn the Staff Accounting Bulletin 121 (SAB 121) in a bipartisan step that will account for the banks’ activities involving cryptocurrencies. This resolution was favored by a majority of 60 votes, from both parties in the Congress which represented huge dissatisfaction on both sides of the aisle.
The passage of this Congressional Review Act (CRA) resolution marks a milestone as the first standalone crypto legislation to pass Congress. The resolution now heads to President Biden’s desk, where a potential veto looms.
The CRA resolution being passed at this Congressional level is indeed a first step as it is the first dedicated crypto legislation to pass Congress. The resolution now goes to the President’s desk to await a possible veto.
Regarding the regulation of cryptocurrency, Senator Cynthia Lummis (R-WY) noted that this particular vote was a success for financial innovation and that it clearly stated that under SEC Chair Gary Gensler’s approach, the Biden administration should step aside.
The topic has attracted massive attention, especially from young people who are very active in cryptocurrency trading. A Digital Currency Group (DCG) poll showed that 48% of voters in swing states did not support those candidates who oppose cryptocurrency campaigns. This reveals a growing political influence of crypto supporters on the whole voting population in some particular states.
SAB 121 opponents claim that the rule is too harsh for consumers as it limits the scope of digital assets in the financial sphere by disallowing banks to engage in those assets.
The congress has clearly shown support, attention now turns to the Biden administration. They are hoping that the president will listen to the majority members and eventually sign the repeal of SAB 121.
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