The US Senate just passed a bill that would undo SEC guidelines that discourage banks and large financial institutions from holding Bitcoin and crypto assets.
The legislation, which passed the House of Representatives last week, has now passed the Senate by a vote of 60-38 and is on its way to President Biden’s desk.
The bill reverses an SEC accounting rule that forces banks that hold crypto on behalf of customers to label those assets as liabilities on banks’ balance sheets.
Pro-Bitcoin Senator Cynthia Lummis say The passage of the legislation marks the beginning of a new pro-political era for the industry.
“The Senate passing a CRA that undoes SAB 121 is a victory for financial innovation and a clear rebuke of the way the Biden administrator and Gary Gensler have prosecuted crypto.
It is also the first time that Congress has passed standalone crypto legislation. We’re just getting started.”
Republican Rep. Mike Flood, who authored the resolution, said it is designed to “ensure consumers are protected by removing roadblocks that prevent highly regulated banks from acting as custodians of digital assets.”
The Biden administration has strongly vowed to veto the bill, claiming it would “improperly limit the SEC’s ability to ensure appropriate guardrails and address future issues related to crypto assets, including financial stability to grab.”
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Featured image: Shutterstock/Larich