Senate Passes Bill To Scrap Anti-Crypto Banking Policy

2 Mins read

The United States Senate passed a resolution on Tuesday to scrap a de facto ban preventing the nation’s banks from offering crypto custody services.

The vote drew cautious optimism from Bitcoin’s most fervent supporters online and in Congress, who are still wary of a likely veto by the presidential office.

Will Crypto Banking Be Possible In The US?

As voted on Thursday afternoon, H.J.Res.109 certifies congressional disapproval of Staff Accounting Bulletin 121 (SAB 121), which was published by the Securities and Exchange Commission (SEC) two years ago.

The bulletin provides accounting guidance for publicly traded banks aiming to provide services safeguarding their customers’ crypto assets.

Critics of SAB 121 call it a “rule” merely disguised as “guidance” which makes it extremely cost-prohibitive and impractical to actually offer such services. House Rep Tom Emmer (R-Minn), for example, called the bulletin one of SEC chair Gensler’s “egregious attempts to expand SEC authority,” and a sign of his “clear bias toward the digital asset ecosystem.”

The resolution passed through the House of Representatives last week with 55% of votes in favor. Thursday’s senate vote was a more lopsided 60/38 split, with all Republicans voting in favor alongside 11 Democrats.

Getting Past Biden

Neither the House nor Senate votes scored a strong enough majority to overturn a veto, however – something President Joe Biden has already promised to do if and when it reaches his desk.

However, some are optimistic that Thursday’s result could make the administration change its mind. Many influential senators defected from party lines on the vote, such as Democratic caucus leader Chuck Schumer (D-NY).

“The bigger impact of this vote is on the agencies’ behavior,” tweeted Custodia Bank CEO Caitlin Long on Thursday, referring to the SEC’s crypto-hostile enforcement actions over the past year.

“This gives the people within the agencies who *HATE* what they’re doing the political backing to push back hard,” Long continued. “[Elizabeth Warren] will probably try to crack down even harder but she’s past her peak.”

Elizabeth Warren presented arguments on Thursday in support of SAB 121 and the SEC, claiming the bulletin merely advises banks to provide sensible disclosures about risks related to crypto custody.

The resolution marks the first-ever piece of purely crypto-focused legislation passed through both chambers of Congress.


Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER 2024 for CryptoPotato readers at Bybit: Use this link to register and open a $500 BTC-USDT position on Bybit Exchange for free!

Source link

Related posts

Western Banks Face Major Asset Seizure in Russia Amid Gazprom Subsidiary Dispute

1 Mins read
In a significant move against western banks, a St Petersburg court has seized over $763 million of assets from Unicredit, Deutsche Bank,…

Discover How RCO Finance (RCOF) Is Revolutionizing DeFi With Its Cutting-Edge AI Trading Tool

2 Mins read
The cryptocurrency trading landscape has long been complex, with enthusiasts facing various challenges. From converting crypto to fiat to limited accessibility, crypto…

XRP Whales Go On Massive Buying Spree, Why This New Project Could Be Next

2 Mins read
XRP whales, who engaged in a massive buying spree last week, could take advantage of a new era of financial opportunities with…



Leave a Reply

Your email address will not be published. Required fields are marked *