In a new update, the SAB 121 rule of The SEC has been turned down by the US House of Representatives.
The US House of Representatives Unite Against The SAB 121 Rule
The recent vote in the US House of Reps showed a rare agreement between Democrats and Republicans on the issue of cryptocurrency regulation.
Specifically, they supported a resolution to overturn a rule by the Securities and Exchange Commission (SEC) insisting that cryptocurrencies should be treated as liabilities.
This bipartisan support highlights concerns among lawmakers about the impact of current regulations on the crypto market.
The US SEC’s rule, known as Staff Accounting Bulletin (SAB) 121, requires custodians of cryptocurrencies to treat cryptocurrencies as liabilities in their accounting.
Critics argue that Staff Accounting Bulletin (SAB) 121 rule has made it difficult for US banks to offer crypto-related services, leading to a situation where such services are not viable for them.
Republican Congressman Mike Flood criticized the SEC’s standards, saying they are unfair and hinder banks that want to provide crypto custody services.
The support for overturning SAB 121 shows that the rule is stifling growth and consumer choice in the crypto market.
As a result of the nullification of this rule, financial institutions would have more flexibility to hold cryptocurrencies, potentially opening up new opportunities for growth and investment in the crypto market.
However, despite the bipartisan support in the House, the resolution still faces challenges. It needs to pass the Senate and then receive approval from President Joe Biden, who has indicated his opposition to the resolution.
The bipartisan overturning of the SEC’s crypto custodian accounting rules indicates that the US government are in big support of cryptocurrencies.
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Biden Administration’s Stand
President Joe Biden’s administration strongly opposes the recent resolution passed by the US House of Reps to overturn the US Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121 Rule.
President Biden’s administration’s reinforces the US SEC’s regulatory authority over the crypto market, potentially leading to more stringent regulations.
President Biden’s opposition to the SAB Rule could also have a global impact, influencing other countries to treat cryptocurrencies liabilities.
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Conclusion
In conclusion, the support in the US House of Representatives to overturn the US SEC’s rule on crypto custodian accounting reflects a growing concern among lawmakers about the impact of current regulations on the crypto market.
Critics argue that this SAB rule has hindered growth and choice in the market, making it difficult for US banks to offer crypto-related services.
Despite this support, the resolution still faces challenges in the Senate and from President Joe Biden, who opposes it.
However, Biden’s opposition could lead to clearer regulations, potentially attracting more investors and institutions and creating a more stable market environment in the long term.
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