US House Opposes SEC’s Crypto Policy With New Resolution

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As a researcher with a background in finance and a strong interest in the cryptocurrency industry, I find this bipartisan effort to overturn the SEC’s SAB 121 resolution both intriguing and concerning. The vote by the US House Representatives to nullify the bulletin is a significant step towards allowing financial institutions to hold Bitcoin and other digital assets under viable requirements.

The US House of Representatives has passed a resolution aiming to reverse the Securities and Exchange Commission (SEC)’s 2022 directive regarding crypto custodians’ accounting practices.

Joe Biden, the President of the United States, issued a declaration expressing his disapproval of the proposed Senate bill and signaled his intent to use a veto if necessary to prevent its passage.

Democrats And Republicans Join Forces Against The SEC

As a researcher, I’d rephrase it this way: On May 8, I came across the fact that 21 Democratic House Representatives joined forces with 207 Republican ones to support H.J.Res.109. The purpose of this resolution was to revoke Staff Accounting Bulletin (SAB) 121. In accordance with this bulletin, any custodian handling cryptocurrencies or other digital assets must record these assets as a liability in their financial statements.

According to Bitcoinist‘s report, the SEC’s rule has barred US banks from keeping cryptocurrencies due to this making their crypto-related businesses “non-compliant.” Congressman Mike Flood contends that the SEC’s accounting regulations for crypto custody are unjust and obstruct banks aiming to offer such services.

House votes to overturn the #SEC crypto custody guidance.

228 – 182.

As a crypto investor, I’ve been closely following the developments regarding the SEC’s cryptocurrency custody accounting standards. According to recent reports from PANews, the US House of Representatives has taken a step towards challenging these regulations by voting in favor of a resolution aimed at overturning them. This potential change could have significant implications for the crypto industry as a whole.

— CryptoSmind (@SmindCrypto) May 9, 2024

As a researcher studying recent legislative developments, I can tell you that on Wednesday, 228 representatives supported the passing of this bill in the House of Representatives, while 182 were against it. The Senate now holds the power to vote on this legislation next. If endorsed by the Senate, the resolution would make its way to the President’s desk for approval. This approval would enable financial institutions to safely manage and hold cryptocurrencies like Bitcoin under established regulations.

According to Fox Business Journalist Elizabeth Terret’s assessment, more House Democrats than anticipated have rallied behind the bipartisan decision. Nevertheless, in my view, the bill faces an uphill battle in the Senate and may not even reach the President’s desk for signing.

Critics, led by Patrick McHenry, the Chair of the Financial Services Committee, have strongly condemned SAB 121.

As a crypto investor, I’ve been closely following the developments at the Securities and Exchange Commission (SEC). And on Wednesday, during a speech on the House floor, the Committee’s Chair, McHenry, called out SEC Chairman Gary Gensler over what he described as one of the most egregious instances of regulatory overreach that has marked Gensler’s tenure at the commission. McHenry expressed his backing for the resolution in question.

As a researcher studying digital asset markets, I strongly believe that this bipartisan resolution is of paramount importance. Its primary goal is to safeguard consumers and encourage innovation in this rapidly evolving sector. Moreover, it is crucial that we prevent regulatory overreach by the SEC and thwart their attempts to bypass the Administrative Procedure Act.

As a researcher studying the regulatory landscape of cryptocurrencies in the United States, I’ve noticed Senator Cynthia Lummis’ consistent opposition to the SAB 121 rule on various occasions. In her criticism on May 1st, she highlighted the US government’s “overreach” towards the crypto industry and expressed concerns over what she perceives as the Department of Justice’s (DOJ) overly aggressive stance against the sector.

President Biden In Favor Of SEC’s Crypto Crackdown

Following the positive decision made by the US House Representatives, the White House responded with a statement expressing their firm opposition to the resolution’s approval, according to the announcement from Biden’s administration.

As a crypto investor, I understand the president’s perspective that the proposed bill could potentially disrupt the important work being done by the SEC to shield us from risks in the crypto market and ensure the stability of our financial system as a whole.

As an analyst, I would rephrase that as follows: The assertion raises concerns about how effectively the Securities and Exchange Commission (SEC) can implement new regulations in the future if the Congressional Review Act is invoked.

The White House believes that restricting the Securities and Exchange Commission (SEC) from regulating digital assets could result in significant financial volatility and market chaos. Consequently, President Biden has made it clear that he would reject the proposed senate resolution if it were to reach his desk.

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2024-05-10 06:12