According to The Block, the US Senate voted 60 to 38 to overturn the controversial cryptocurrency accounting rule of the US Securities and Exchange Commission (SEC). The SEC’s Staff Accounting Bulletin No. 121 (SAB 121), released in 2022, requires companies to record their holdings of cryptocurrency on their balance sheets, and custodians of cryptocurrencies must list their customers’ holdings as liabilities on their balance sheets.
This rule has sparked controversy in the cryptocurrency industry over the past year, with concerns that it is too stringent and may hinder banks from providing custody services for digital assets. Last week, the House of Representatives also voted in favor of overturning SAB 121 with a vote of 228 to 182, with majority Republicans supporting the measure and 21 Democrats doing the same.
However, all of this may be in vain. As the votes of the Senate and the House of Representatives did not reach the two-thirds majority required to override a presidential veto, the final result will depend on President Biden. However, the US White House stated in an executive policy statement released last week that President Biden will veto the vote to overturn SAB 121. The White House stated:
Many industry insiders have criticized the Biden administration for defending SAB 121. Cody Carbone, Vice President of Policy at the Chamber of Digital Commerce, stated in an interview:
