US Senate votes to overturn SEC rule, allowing regulated firms to hold Bitcoin

• The Senate voted 60-38 in favor of overturning the SEC rule.
• Bipartisan support signals potential changes to crypto regulation.
• Presidential veto possible.

In a historic decision, the US Senate has voted to overturn a key Securities and Exchange Commission (SEC) rule that barred regulated financial firms from holding. Bitcoin And other cryptocurrencies.

The legislation, known as H.J. Res. 109, has previously been passed in the US House The bipartisan support and Senate endorsement signals a potential shift in the regulatory landscape for digital assets in the United States.

Bipartisan support for HJ Res. 109 reverse

The decision to overturn the SEC’s Staff Accounting Bulletin (SAB) No. 121 received significant bipartisan support in both the House and Senate.

The rule, which was in effect for two years, prohibited regulated financial institutions from holding cryptocurrencies.

However, lawmakers moved to invalidate this restrictive regulation with a 60-38 vote in the Senate and 228-182 vote in the House.

Supporters of the legislation argue that allowing regulated firms to hold cryptocurrencies will give consumers more choices and opportunities in the rapidly evolving digital asset market. They argue that regulated institutions are well equipped to handle the risks associated with cryptocurrency custody, given their existing compliance frameworks and security protocols.

potential presidential veto

After overwhelming support in Congress to overturn the SEC rule, the legislation now faces its final test before US President Joe Biden.

While the White House has indicated that the measure could be vetoed, citing concerns about impeding the SEC’s work to protect investors in crypto-asset markets, supporters are hopeful that Biden will allow regulated firms. Will recognize the importance of allowing involvement in cryptocurrency custody.

Critics of the SEC’s rule argue that it stifles innovation and hinders the ability of financial institutions to meet the growing demand for cryptocurrency services. They point to the SEC’s recent approval of spot Bitcoin exchange traded funds (ETFs) as evidence of the growing mainstream acceptance of cryptocurrencies and the need for regulatory flexibility in this rapidly evolving space.

Enthusiasm was seen over the Senate’s decision

The decision to overturn the SEC rule has been greeted with enthusiasm by industry stakeholders, who see it as a positive step towards greater institutional adoption of cryptocurrencies. Many believe that allowing regulated financial firms to hold cryptocurrencies will help legitimize the asset class and attract more institutional investors.

However, some industry experts caution that regulatory clarity is still needed to ensure long-term sustainability and growth. cryptocurrency market. They stress the importance of striking a balance between innovation and investor protection to foster a healthy and sustainable ecosystem for digital assets.