The US Senate Votes to Overturn SEC Rule on Crypto Custody
The US Senate recently voted in favor of overturning a rule by the Securities and Exchange Commission (SEC) concerning the custody of cryptocurrencies. This decision is pending approval from President Joe Biden and will reveal his stance on the crypto industry.
The SEC May Face Challenges
Previously, the House of Representatives also voted to overturn the same rule issued by the SEC. However, the Biden administration hinted at a potential veto if the House passed the resolution.
If the Senate’s resolution is approved, it would effectively overturn the SEC’s rule, bringing about a significant change in how cryptocurrencies are handled in the US.
- Senator Cynthia Lummis led the effort to overturn the SEC rule in the Senate.
- The White House issued a statement expressing concerns about the potential financial instability if the SEC’s authority is limited in regulating digital assets.
Entering Uncharted Territory
Despite concerns raised by some officials, there is bipartisan support in the Senate for overturning the SEC rule. This bipartisan backing is seen as a positive sign for future crypto-related legislation in the US.
- Congresswoman Maxine Waters accused officials of attempting to reduce the SEC’s power through this resolution.
- Supporters believe that bipartisan support could sway Biden’s decision regarding the veto.
The SEC’s rule, issued in 2022, mandates that companies holding cryptocurrencies for customers must list them as both assets and liabilities on their balance sheets. This regulation has been viewed as restrictive and is seen as a barrier for financial institutions entering the crypto space.
- Lawmakers supporting the crypto industry argue that the SEC’s rule is an example of overregulation.
- Efforts to regulate cryptocurrency in the US have been met with challenges due to disagreements between Democrats and Republicans.
The Crypto Industry under Scrutiny
Under President Biden’s administration, the SEC has intensified its actions against various crypto entities, sparking criticism from the industry. Chairman Gary Gensler’s leadership at the SEC has led to increased scrutiny and enforcement actions in the crypto space.
- Major crypto entities like Uniswap, ConsenSys, and Robinhood have faced regulatory pressure from the SEC.
- The ongoing clash between regulators and the crypto industry coincides with the upcoming US Presidential election in 2024.
Donald Trump, a former president and potential candidate for the upcoming election, has expressed support for the crypto industry and criticized Biden’s approach towards cryptocurrencies.
Potential Impacts of Regulatory Changes
The outcome of the Senate resolution and Biden’s decision could have significant implications for the crypto industry in the US. The regulatory landscape for cryptocurrencies is likely to evolve based on these developments.
Hot Take: The Future of Crypto Regulation in the US
As the US Senate votes to overturn the SEC’s rule on crypto custody, the crypto industry awaits President Biden’s decision. The outcome of this resolution could shape the future of cryptocurrency regulation in the US, impacting how digital assets are handled and perceived in the country.
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