U.S. Senate Votes 60-38 to Overturn SEC's Controversial Crypto Rule SAB 121 with Bipartisan Support

May 16, 2024, 02:31 PM

The U.S. Senate has voted 60-38 to overturn the SEC's controversial Staff Accounting Bulletin 121 (SAB 121), which discouraged financial institutions from being custodians of digital assets. The resolution had previously passed the House with significant bipartisan support. Representative Wiley Nickel and other lawmakers criticized the SEC's approach, arguing that it forced President Biden to take sides on a contentious issue. Despite the strong bipartisan backing, President Biden has threatened to veto the bill. The repeal marks a significant moment for crypto regulation in Congress, highlighting a rare agreement between the crypto and traditional finance industries. SEC Chair Gary Gensler faced criticism for the rule, which was seen as the first major piece of crypto regulation.