US Senate Bill Passes, Overturning SEC Guidelines on Bank Crypto Holdings
The US Senate has approved a bill that overturns SEC guidelines discouraging banks and financial institutions from holding Bitcoin and other crypto assets. Following its success in the House last week, the bill has passed the Senate with a 60-38 vote and is now on its way to President Biden’s desk.
Reversal of SEC Rule Impacting Banks
- The legislation overturns an SEC accounting rule that mandates banks to classify crypto assets held for clients as liabilities on their balance sheets.
Pro-Crypto Sentiments from Senators
- Senator Cynthia Lummis views the bill’s passage as a step towards supporting financial innovation and pushing back against anti-crypto sentiments from the Biden administration and Gary Gensler.
Legislation for Consumer Protection
- Republican Representative Mike Flood, the bill’s author, aims to remove obstacles for highly regulated banks to serve as custodians of digital assets for consumer protection.
Biden Administration’s Opposition
- The Biden Administration plans to veto the bill, citing concerns about limiting the SEC’s authority to regulate crypto assets and ensure financial stability.
Hot Take: US Senate Decision Shakes Up Crypto Industry Landscape
The US Senate’s approval of the bill signals a significant shift in the regulatory environment for cryptocurrencies, allowing banks and financial institutions greater freedom in dealing with digital assets. This decision marks a pivotal moment in establishing clearer guidelines for the industry’s future development and integration with traditional financial systems.
Sources:
US Senate Bill Details
SEC Accounting Rule Reversal
Senator Lummis’ Twitter
Biden Administration Veto Statement
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