Regulation
US Senate votes to overturn SEC rule, allowing regulated companies to hold Bitcoin
- The Senate voted 60-38 to overturn the SEC rule.
- The bipartisan support signals a potential shift in crypto regulation.
- Presidential veto possible.
In a historic decision, the US Senate has voted to overturn a key Securities and Exchange Commission (SEC) rule that prohibited regulated financial companies from holding securities. Bitcoin and other cryptocurrencies.
The legislation, known as HJ Res. 109, previously passed by the United States House of Representatives With bipartisan support and support from the Senate, this signals a potential shift in the regulatory landscape for digital assets in the United States.
Bipartisan support for HJ Res. 109 reversal
The decision to rescind SEC Staff Accounting Bulletin (SAB) No. 121 garnered significant bipartisan support in the House and Senate.
The rule, in effect for two years, prohibited regulated financial institutions from holding cryptocurrencies.
However, lawmakers moved to invalidate these restrictive regulations by a vote of 60 to 38 in the Senate and 228 to 182 in the House.
Supporters of the legislation argue that allowing regulated companies to hold cryptocurrencies will provide consumers with more options and opportunities in the rapidly evolving digital asset market. They assert that regulated institutions are well equipped to manage the risks associated with custody of cryptocurrencies, given their existing compliance frameworks and security protocols.
Potential presidential veto
After overwhelming support for repealing the SEC rule in Congress, the legislation now faces its final test on US President Joe Biden’s desk.
Although the White House has indicated the measure could be vetoed, citing concerns about disrupting the SEC’s work to protect investors in crypto-asset markets, supporters are hopeful that Biden will recognize the importance of allowing regulated businesses to engage in the custody of cryptocurrencies.
Critics of the SEC rule say it stifles innovation and hampers financial institutions’ ability to meet growing demand for cryptocurrency services. They point to the SEC’s recent approval of spot Bitcoin exchange-traded funds (ETFs) as evidence of the growing mainstream acceptance of cryptocurrencies and the need for regulatory flexibility in this rapidly evolving space.
The Senate’s decision welcomed with enthusiasm
The decision to repeal the SEC rule was greeted enthusiastically by industry participants, who see it as a positive step toward greater institutional adoption of cryptocurrencies. Many believe that allowing regulated financial companies to hold cryptocurrencies will help legitimize the asset class and attract more institutional investors.
However, some industry experts warn that regulatory clarity is still needed to ensure the sector’s long-term stability and growth. cryptocurrency walk. They highlight the importance of striking a balance between innovation and investor protection to foster a healthy and sustainable ecosystem for digital assets.