The Senate has voted to overturn a Securities and Exchange Commission (SEC) rule that has been a hindrance to regulated financial firms holding Bitcoin. The decision, which follows the House’s approval last week, will challenge an SEC accounting policy known as Staff Accounting Bulletin (SAB) No. 121.

The Senate's affirmative vote of 60-38 reflects bipartisan support for H.J. Res. 109, the joint resolution aimed at invalidating the SEC rule that has been in place for two years. This vote in the Senate, which is currently under Democratic control, came after the Republican-controlled House pushed the bill forward on May 8th with a 228–182 vote.

Critics of the rule argue it discourages companies and major custodians from holding Bitcoin on behalf of customers due to the associated risks and regulatory complexities.

Despite the legislative pushback against the SEC policy, President Joe Biden has indicated through a White House statement that he is likely to veto the measure. The administration's memo underscored that the SEC crypto accounting provision reflects "considered SEC staff views" and was issued in response to "demonstrated technological, legal, and regulatory risks that have caused substantial losses to consumers."

Former Rep. Barbara Comstock (R-VA), now the executive director of the American Consumer and Investor Institute, has been vocal against the SEC rule, describing it as "another misguided SEC policy" with widespread bipartisan opposition.

The bill now awaits President Biden's decision. If vetoed, it would require a two-thirds majority in both the House and the Senate to override the veto — a high hurdle that would necessitate significant bipartisan support.

Watcher Guru Article