U.S. Senate Overturns SEC's Anti-Crypto Rule SAB 121 in 60-38 Vote, Biden Threatens Veto

May 16, 2024, 04:32 PM

The U.S. Senate has voted 60-38 to overturn the SEC's Staff Accounting Bulletin 121 (SAB 121), which prevented highly regulated financial firms from custodying Bitcoin and other cryptocurrencies. This marks a significant bipartisan rebuke of the SEC's approach to crypto regulation. Key Democratic Senators, including Chuck Schumer, Cory Booker, and Kirsten Gillibrand, broke party lines to support the repeal. Senators Elizabeth Warren and Cynthia Lummis had opposing views on the bill, with Warren urging a 'no' vote and Lummis advocating for its passage. The House had previously voted to overturn SAB 121. The bill now heads to President Biden, who has threatened to veto it. If Biden vetoes, Congress would need a two-thirds majority in both chambers to override it. Gary Gensler's leadership at the SEC has faced strong criticism amid this legislative move.