The US Senate just passed a bill overturning SEC guidelines that disincentivize banks and large financial institutions from holding Bitcoin and crypto assets.
The legislation, which succeeded in the House last week, has now passed the Senate in a 60-38 vote and is headed to President Biden’s desk.
The bill reverses an SEC accounting rule that forces banks holding crypto on behalf of clients to label those assets as liabilities on the banks’ balance sheets.
Pro-Bitcoin Senator Cynthia Lummis says the legislation’s passage signals the beginning of a new pro-political era for the industry.
“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.”
Republican Representative Mike Flood, who drafted the resolution, said it’s designed to “ensure consumers are protected by removing roadblocks that prevent highly regulated banks from acting as custodians of digital assets.”
The Biden Administration has forcefully vowed to veto the law, claiming it would “inappropriately constrain the SEC’s ability to ensure appropriate guardrails and address future issues related to crypto-assets including financial stability.”
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