In a landmark decision, the U.S. Senate voted to repeal the Securities and Exchange Commission's (SEC) SAB 121 rule. This rule had previously prevented regulated financial institutions from storing Bitcoin and other crypto assets. Cancellation of this rule may now pave the way for these institutions to engage with cryptocurrencies more freely.
But the war is not over yet. The decision now goes to President Joe Biden, who last week expressed his intention to veto the Senate's repeal. If the president vetoes, the issue will go back to the House and Senate. Both chambers would need a two-thirds majority vote to override the veto, setting the stage for a significant legislative fight.
Sen. Cynthia Lummis celebrated the Senate's decision, calling it “a win for financial innovation” and “a clear challenge to the way the Biden administration and Gary Gensler are persecuting crypto.” He also emphasized the importance of this event, stating that “this is the first time Congress has passed independent crypto legislation” and promised that “we are just getting started.”
Meanwhile, Congressman Tom Emmer described the situation as “a policy conflict between the Executive and the American people.” He noted that the bipartisan passage of the repeal of SAB 121 by Congress indicates strong support for cryptocurrencies. But he warned that if Biden vetoed the resolution, it would show his willingness to “kill opportunity for Americans at the expense of Americans.”
*This is not investment advice.