House Resolution to Overturn Controversial SEC Rule Likely to Pass in Senate: Sources

A knowledgeable source from the Senate informed CoinDesk that they anticipated holding a floor vote as early as Thursday morning’s late session, with the bill looking favorable for approval.

“There’ll likely be more than one Democrat voting for it,” the individual said.

The SAB 121 aimed to clarify the way businesses should report crypto assets on their financial statements by keeping them on the balance sheet. However, this directive has faced criticism as it may discourage large custodians and other corporations from providing crypto custody services to their clients. Recently, the House of Representatives passed a resolution opposing this guidance.

If approved by U.S. President Joe Biden, the House resolution would express disapproval towards the bulletin and prevent the Securities and Exchange Commission (SEC) from releasing any comparable directives in the future. The White House has indicated that should the resolution progress past the Senate, they will veto it, stating that it represents the views of the SEC staff.

The SEC’s capacity to establish necessary safeguards and handle future concerns regarding crypto-assets, including financial security, could be unnecessarily restricted by this action.

As an analyst, I would put it this way: In spite of the potential for a veto from the White House, I observed that 21 Democratic House members and the great majority of their Republican counterparts still chose to move forward with the resolution.

The bill’s advocate, Representative Mike Flood of Nebraska, expressed optimism that the Senate would approve it this week. He also indicated that the Securities and Exchange Commission (SEC) is becoming aware of our determination.

Ron Hammond, the head of government relations at the Blockchain Association, expressed in a release that they anticipated unanimous backing for the proposed legislation from both Democratic and Republican lawmakers.

“Despite the possibility of a presidential veto, we urge reconsideration and ultimately the removal of this damaging anti-crypto provision,” suggested Hammond.