The controversial SAB 121, a regulation imposed by the Securities and Exchange Commission (SEC) on digital asset custodians, has been overturned by the U.S. Senate. The resolution, known as H.J. Res. 109, received support from both the Senate and the House of Representatives. However, it now faces the potential of being vetoed by President Joe Biden.
In an effort to eliminate regulatory burdens on financial institutions and firms that act as custodians for digital assets, the Senate passed H.J. Res. 109 with 60 votes in favor and 38 against. The House Financial Services Committee also approved the resolution, explaining that it aims to protect consumers by removing obstacles that prevent regulated financial institutions from serving as custodians for digital assets.
Despite the resolution’s success in both chambers, the White House has expressed its intention to veto it if presented to President Biden. U.S. Senator Cynthia Lummis, a critic of SAB 121, celebrated the Senate’s decision on social media, referring to the regulation as a “misguided rule” and applauding the resolution as a victory for financial innovation. She also urged the public to voice their support for the resolution to the White House, as President Biden’s decision stands as the final obstacle to its enactment.
What are your thoughts on the Senate’s decision to overturn SEC’s SAB 121? Share your opinions in the comments section below.
