The US Senate passed a resolution that repealed the SEC crypto regulation on banks

A majority of lawmakers in the United States Senate have passed a joint resolution calling on the Securities and Exchange Commission to end legislation that would target financial institutions that do business with crypto companies.

US Senators passed HJRes on May 16 by a vote of 60-38. 109, a decision revoking SEC Staff Accounting Bulletin No. 121. The commission's rule would require banks to keep their customers' digital assets on their balance sheets, requiring capital to be held against them — a move that many lawmakers and industry leaders have criticized as stifling innovation.

The dramatic result of 60 ‘yes' votes in the Senate sends a strong signal that both chambers of Congress across the political divide clearly reject this legislation, crypto advocacy group Blockchain Association said in a May 16 post. .

On May 8, before the resolution passed the US House of Representatives, President Joe Biden said he intended to veto the bill “to protect investors in crypto-asset markets and protect the broader financial system.” If the US president vetoes the bill, it goes back to Congress and requires a two-thirds vote to reauthorize it.

“The threat of a presidential veto negates the growing awareness among the voting public, especially among young people, that our elected officials should be concerned,” Blockchain Association.

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The vote was split 51–49 in favor of Democrats, representing a typical bipartisan move in the US Senate. According to Senator Cynthia Lammis, this session of Congress is the first to pass “neutral crypto legislation.” The White House did not immediately comment on the decision.

“It is clear that there is strong opposition to SAB 121, and I am questioning it. [President Biden] to reconsider his previous statement against the resolution,” said Rep. Mike Flood, who sponsored the resolution.

The joint resolution could be the bellwether for a separate crypto bill, the 21st Century Financial Innovation and Technology Act. The legislation clarifies the role of the SEC and the Commodity Futures Trading Commission in regulating digital assets. It is out of committee in July 2023 and is expected to be brought up in the House for a floor vote in May.

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