The US Senate has voted to remove a Securities and Exchange Commission (SEC) rule prohibiting authorized financial institutions from holding Bitcoin and other cryptocurrencies. The US House of Representatives already approved the law, H.J. Res. 109, last week.
The decision upholds the reversal of SEC Staff Accounting Bulletin (SAB) No. 121. As a result, the legislative action against the regulators received bipartisan backing. The joint resolution rejecting the previous SEC rule will now reach the president’s desk.
US Senate Approves Regulated Firms Bitcoin Holdings
Over the previous few years, the digital asset market and the SEC have had a problematic relationship. A substantial part of this has been attributed to the latter’s dedication to regulating through enforcement. As a result, the industry has been embroiled in continuing lawsuits and legal disputes with the government.
The US government has acted against one of the agency’s most controversial rules. Specifically, the US Senate removed an SEC rule that barred regulated financial organizations from holding Bitcoin and other cryptocurrencies.
The Senate leader voted Thursday to repeal a two-year-old SEC rule. The move to rescind the SEC recommendation was met with bipartisan support. Indeed, it restored the 60-38 vote in the Senate, which Democrats currently control.
This decision occurred after the Republican-controlled United States House of Representatives advanced the bill on May 8th. The legislative opposition to the SEC rule passed 228-182 but now faces a final test on US President Joe Biden’s desk.
According to rumors, the White House has indicated that the proposal will be vetoed. However, the overwhelming displeasure with the SEC’s guidance is evident in policymakers’ reception in the House and Senate.