Overview

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The US Senate has officially voted to overturn a US Securities and Exchange Commission (SEC) rule that prevents regulated financial firms from holding Bitcoin Moments ago, the Senate passed legislation H.J.Res. 109 that would overturn the SEC’s Staff Accounting Bulletin (SAB) No. 121, preventing highly regulated Critics argue this mandate creates substantial operational and financial burdens for firms handling cryptocurrencies. The policy has faced opposition for potentially In a landmark decision, the US Senate has voted to overturn a key Securities and Exchange Commission (SEC) rule that barred regulated financial firms from A significant majority of U.S. Senate lawmakers have passed a resolution calling for the Securities and Exchange Commission (SEC) to revoke a rule impacting financial US Senate has voted to overturn SEC ruling preventing highly regulated financial firms from holding crypto. 12 Democrats joined 48 Republicans in voting to overturn U.S. President Joe Biden said he intended to veto the joint resolution aimed at overturning an SEC rule requiring banks to keep customers’ digital assets on their balance The Senate voted 60 to 38 on Thursday on a resolution to overturn the SEC’s SAB 121, which establishes certain accounting standards for firms that custody crypto. US Senate Overturns SEC Bitcoin Ban for Firms The US Senate has voted to remove a Securities and Exchange Commission (SEC) rule prohibiting authorized financial institutions

US Senate Overturns SEC Rule Barring Firms from Holding Bitcoin: A Game Changer for Crypto?

In a landmark decision, the US Senate has officially voted to overturn a US Securities and Exchange Commission (SEC) rule that prevents regulated financial firms from holding Bitcoin. This move signals a potentially significant shift in the regulatory landscape for cryptocurrency in the United States.

The Senate passed legislation H.J.Res. 109 that would overturn the SEC’s Staff Accounting Bulletin (SAB) No. 121, preventing highly regulated financial institutions from offering custody services for crypto assets like Bitcoin. A significant majority of U.S. Senate lawmakers have passed a resolution calling for the Securities and Exchange Commission (SEC) to revoke a rule impacting financial firms. US Senate Overturns SEC Bitcoin Ban for Firms.

What Does This Mean?

The overturned rule, SAB 121, establishes certain accounting standards for firms that custody crypto. Critics argue this mandate creates substantial operational and financial burdens for firms handling cryptocurrencies. The policy has faced opposition for potentially hindering institutional adoption of Bitcoin and other digital assets.

The Vote: A Bipartisan Effort

The Senate voted 60 to 38 on Thursday on a resolution to overturn the SEC’s SAB 121. Notably, 12 Democrats joined 48 Republicans in voting to overturn the SEC ruling preventing highly regulated financial firms from holding crypto. This demonstrates a bipartisan concern about the SEC's approach to regulating crypto custody.

Potential Veto Threat Looms

U.S. President Joe Biden has indicated that he intends to veto the joint resolution aimed at overturning an SEC rule requiring banks to keep customers’ digital assets on their balance sheets. This sets the stage for a potential showdown between the legislative and executive branches regarding crypto regulation. The US Senate has voted to remove a Securities and Exchange Commission (SEC) rule prohibiting authorized financial institutions from engaging with Bitcoin custody services.

Impact on the Crypto Market

The implications of this overturned SEC rule are far-reaching. Removing the barrier for regulated financial firms to hold Bitcoin could lead to increased institutional investment in the cryptocurrency market. This could potentially drive up the price of Bitcoin and other cryptocurrencies, while also fostering greater mainstream adoption. More firms may be incentivized to offer Bitcoin-related services, further legitimizing the asset class.

Moving Forward

While the Senate's vote represents a victory for the crypto industry, the possibility of a presidential veto introduces uncertainty. The coming weeks will be crucial in determining the ultimate fate of SAB 121 and its impact on the future of Bitcoin and cryptocurrency regulation in the US.

Stay tuned for further updates on this developing story.

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