Senate Expected to Greenlight House Resolution Against Controversial SEC Rule: Insider Report
In an upcoming Senate vote slated for Thursday, a proposal to rescind the U.S. Securities and Exchange Commission’s Staff Accounting Bulletin 121 appears likely to be approved, as reported by several well-informed sources.
One Senate insider noted that a floor vote is anticipated late Thursday morning, suggesting the bill is in a favorable position for passage.
“We anticipate some Democratic support for this measure,” the source added.
SAB 121 aimed to guide businesses on how to account for cryptocurrency assets, stipulating that these assets should be included on their own balance sheets. Critics argue that this guidance discourages major custodians and other entities from holding cryptocurrencies on behalf of customers. The House of Representatives recently voted to advance a resolution that rejects this guidance.
If President Joe Biden endorses the resolution, it would nullify the bulletin and prevent the SEC from issuing similar instructions in the future. However, the White House has warned of a potential veto if the resolution passes the Senate, asserting that the bulletin “reflects considered views of SEC staff.”
The veto notice further stated, “It could also unduly restrict the SEC’s ability to implement proper safeguards and address emerging issues related to crypto-assets, including financial stability concerns.”
Despite this veto threat, 21 House Democrats joined the majority of House Republicans in advancing the resolution.
Rep. Mike Flood (R-Neb.), the resolution’s sponsor, expressed optimism, saying, “We’re hopeful for Senate approval this week, and it’s clear the SEC is taking our stance seriously.”
Ron Hammond, government relations director at the Blockchain Association, commented that the resolution was expected to garner bipartisan support.
“Nevertheless, the possibility of a presidential veto looms,” Hammond stated. “We urge a reconsideration of the veto to eliminate this detrimental, anti-crypto regulation.”
