This decision follows a similar vote in the House, where 21 Democrats joined Republicans to pass the bill.
The measure now heads to President Joe Biden, who has suggested he might veto it. Let’s explore more about SAB 121.
Senate Overturns Crypto Accounting Rule, Awaits Biden’s Decision
This requirement makes little sense because the assets belong to the customers, not the bank. Critics say SAB 121 discourages banks from entering crypto, leading to less customer protection. Also, it contradicts OCC guidance, adding to regulatory confusion.
Source: X
The recent Senate vote marks a notable shift in the political landscape. Traditionally, Democrats have aligned with Senator Elizabeth Warren’s cautious stance on financial and technological matters. However, this vote indicates a break from Warren’s influence, with Democratic leaders, including Senate Majority Leader Chuck Schumer, supporting the repeal of SAB 121.
More About SAB 121
This shows a big Democratic power shift, resisting perceived SEC overreach. This legislative success did not happen overnight. It’s due to Democrats in Congress and Senate recognizing crypto’s importance. Behind the scenes, numerous individuals and groups worked diligently to advocate for this change.
Interestingly, an ironic alignment of incentives between banks and the crypto industry also played a role in driving this outcome. Both sectors recognized the adverse impacts of SAB 121 and collaborated to support its repeal. The overturning of SAB 121 is a pivotal moment for the crypto industry and banking sector alike. Here is a good X thread about this important event:
Source: X
It signals a broader acceptance and understanding of digital assets within the legislative sphere and underscores the dynamic and evolving nature of financial regulation in the United States.
As the bill awaits President Biden’s decision, the crypto community and financial institutions are keenly watching, aware that the outcome will have lasting implications for the future of digital asset custody and regulation.
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