United

<h4><strong>This decision follows a similar vote in the House, where 21 Democrats joined Republicans to pass the bill. </strong></h4> 
<p>The measure now heads to President Joe Biden, who has suggested he might veto it. Let’s explore more about SAB 121.</p> 
<h5><strong>Senate Overturns Crypto Accounting Rule, Awaits Biden’s Decision</strong></h5> 
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     SAB 121 required custodians to list digital assets as liabilities on balance sheets. This <a href="https://www.sec.gov/oca/staff-accounting-bulletin-121" target="_blank" rel="noopener">regulation</a> has been heavily criticized for several reasons. The primary issue is its impracticality and potentially detrimental impact on the banking sector. If a bank holds $1 billion in Bitcoin for customers, it must also hold $1 billion in cash to offset this “liability”.
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 <p>This requirement makes little sense because the assets belong to the customers, not the bank. Critics say SAB 121 discourages banks from entering crypto, leading to less customer protection. Also, it contradicts OCC guidance, adding to regulatory confusion.</p> 
 <p><img decoding="async" class="wp-image-140769 aligncenter" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/05/hgfjghfdsw-275x300.jpg" alt="" width="524" height="572" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/05/hgfjghfdsw-275x300.jpg 275w, https://www.altcoinbuzz.io/wp-content/uploads/2024/05/hgfjghfdsw-385x420.jpg 385w, https://www.altcoinbuzz.io/wp-content/uploads/2024/05/hgfjghfdsw.jpg 389w" sizes="(max-width: 524px) 100vw, 524px"></p> 
 <h6 style="text-align: center;"><strong>Source: <a href="https://x.com/Swan/status/1791147675364229571" target="_blank" rel="noopener">X</a></strong></h6> 
 <p>The recent Senate vote marks a notable shift in the political landscape. Traditionally, Democrats have aligned with Senator Elizabeth Warren’s cautious stance on financial and technological matters. However, this vote indicates a break from Warren’s influence, with Democratic leaders, including Senate Majority Leader Chuck Schumer, supporting the repeal of SAB 121.</p> 
 <h5><strong>More About SAB 121</strong></h5> 
 <p>This shows a big Democratic power shift, resisting perceived <a href="https://www.altcoinbuzz.io/?s=sec" target="_blank" rel="noopener">SEC</a> overreach. This legislative success did not happen overnight. It’s due to Democrats in Congress and Senate recognizing crypto’s importance. Behind the scenes, numerous individuals and groups worked diligently to advocate for this change.</p> 
 <p>Interestingly, an ironic alignment of incentives between banks and the crypto industry also played a role in driving this outcome. Both sectors recognized the adverse impacts of SAB 121 and collaborated to support its repeal. The overturning of SAB 121 is a pivotal moment for the crypto industry and banking sector alike. Here is a good X thread about this important event:</p> 
 <p><img decoding="async" class="wp-image-140771 aligncenter" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/05/jghjgfhngfdh-220x300.jpg" alt="" width="419" height="571"></p> 
 <h6 style="text-align: center;"><strong>Source: <a href="https://x.com/DigitalChamber/status/1791161537958199322" target="_blank" rel="noopener">X</a></strong></h6> 
 <p>It signals a broader acceptance and understanding of digital assets within the legislative sphere and underscores the dynamic and evolving nature of financial regulation in the United States.</p> 
 <p>As the bill awaits President Biden’s decision, the crypto community and financial institutions are keenly watching, aware that the outcome will have lasting implications for the future of digital asset custody and regulation.</p> 
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<p><a href="https://www.patreon.com/altcoinbuzz" target="_blank" rel="noopener"><img decoding="async" class="aligncenter wp-image-124240" src="https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1-300x37.jpg" sizes="(max-width: 714px) 100vw, 714px" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1-300x37.jpg 300w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1-1024x127.jpg 1024w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1-768x95.jpg 768w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1-696x86.jpg 696w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1-1068x132.jpg 1068w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1.jpg 1197w" alt="Coins" width="714" height="88"></a></p> 
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<h6><strong>Disclaimer</strong></h6> 
<p>The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.</p> 
<p>The post <a href="https://www.altcoinbuzz.io/cryptocurrency-news/senate-votes-to-overturn-secs-crypto-regulation-sab-121/">Senate Votes to Overturn SEC’s Crypto Regulation SAB 121</a> appeared first on <a href="https://www.altcoinbuzz.io">Altcoin Buzz</a>.</p>

Senate Votes to Overturn SEC’s Crypto Regulation SAB 121

Altcoin Buzz

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