According to many individuals with knowledge of the matter, the Senate is expected to approve a House plan on Thursday that would repeal the U.S. Securities and Exchange Commission’s Staff Accounting Bulletin 121.
. A Senate source who is aware of the circumstances told Said that the bill is in a “good position” to pass and that a floor vote is anticipated on Thursday late in the morning. “It’s likely to receive support from multiple Democrats,” the person stated. SAB 121 states that companies should hold cryptocurrency assets on their own balance sheets in order to provide guidance on how to account for these assets. The message, according to critics, discourages large custodians and other businesses from holding cryptocurrency for clients at all.
The House resolution rejecting the guidance was voted on and advanced last week in the House of Representatives. The House resolution would denounce the bulletin and prevent the SEC from releasing any more guidance of a similar nature if it were to be signed by US President Joe Biden.
Should the resolution pass the Senate as well, the White House vowed to veto it, claiming that it “reflects considered SEC staff views.” “It could also inappropriately constrain the SEC’s ability to ensure appropriate guardrails and address future issues related to crypto-assets including financial stability,” the notice of veto stated.
The resolution was advanced with the support of the overwhelming majority of House Republicans and 21 House Democrats, despite the threat of a veto. Representative Mike Flood (R-Neb.), the resolution’s sponsor, stated in a statement:
“We’re hopeful that it passes the Senate this week, and I think it’s getting the SEC’s attention that we’re serious.” The Blockchain Association’s director of government relations, Ron Hammond, stated in a statement that the organisation anticipated the resolution to receive support from both parties. “That being said, there is still a chance of a presidential veto,” Hammond stated. “We encourage the veto to be reconsidered, allowing this harmful, anti-crypto provision to be struck down.”