Senate Scraps SEC's Bitcoin Rule Amid Growing Support

Crypto Win: Senate Scraps SEC’s Bitcoin Rule Amid Growing Support

Michael Saylor celebrates a major win for the crypto world as the US Senate votes to repeal the SEC’s controversial SAB 121 rule. However, President Biden’s potential veto could still change the outcome.

  • The US Senate votes 60-38 to repeal SEC’s SAB 121, which would have made it hard for banks to hold Bitcoin for their clients.
  • While Michael Saylor and the crypto industry celebrate, President Biden’s possible veto adds uncertainty.

The crypto industry is celebrating a big victory after a surprise win in the US Senate.

On Thursday, the Senate voted 60-38 to repeal a controversial rule from the Securities and Exchange Commission (SEC) known as SAB 121.

This rule would have required banks holding digital assets, like Bitcoin, for their clients to classify these assets as liabilities. Many experts argued that this would hinder innovation and limit safe storage options for digital currency investors.

Senate Scraps SEC’s Bitcoin Rule

Regulators Step Back

The rule, called SAB 121, faced strong opposition from industry experts and the Digital Chamber of Commerce, the leading blockchain trade association.

They said the rule lacked a solid economic basis and would effectively prevent banks from offering Bitcoin custody services.

Austin Campbell, founder of Zero Knowledge Consulting, pointed out that the rule might benefit non-regulated custodians, potentially leaving crypto holders exposed to more risks.

A Bipartisan Surprise: Democrats Support Crypto

The Senate vote wasn’t just a win for the crypto industry; it also showcased unexpected bipartisan cooperation.

Twelve Democrats joined Republicans in voting to repeal the rule, reflecting the growing acceptance of cryptocurrency in the mainstream.

This shift is even more evident with Bitcoin’s recent achievement of gaining approval for a spot exchange-traded fund (ETF) earlier this year.

Michael Saylor, a well-known Bitcoin supporter and co-founder of MicroStrategy, celebrated the news on social media, stating, “Wall Street wants Bitcoin, the House of Representatives wants Bitcoin, and now the Senate wants Bitcoin.”

The Next Challenge: Biden’s Veto Threat

While the Senate vote is a significant win, the celebration might be premature.

President Joe Biden has previously shown support for the SEC’s approach to regulating cryptocurrency, and the White House has indicated that he may veto the resolution.

This potential veto creates uncertainty about the future of the repealed rule.

Despite this, industry leaders remain cautiously optimistic. Robert Leshner, from Compound Labs, called the Senate vote a “first of many” legislative victories for crypto.

However, the possibility of a veto serves as a reminder that the journey toward mainstream acceptance and clear regulatory guidelines for cryptocurrency is still challenging.

The crypto industry is making significant progress in Washington, but the road to full regulatory clarity remains difficult.

The next few weeks will be crucial in determining whether this Senate victory will lead to lasting changes for the crypto sector in the United States.

Stay updated with the latest in crypto news and developments. Visit Nft Giant for daily nft news, crypto news, and insights into the web3 world.

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