Crypto legislation advances in US Congress; Details

A resolution that could bring about a change in the institutional adoption scenario of Bitcoin and cryptocurrencies was presented by the US House Financial Services Committee (HSFC). At a hearing held on February 29, bipartisan support was highlighted for the resolution that calls for the overturn of a Securities and Exchange Commission (SEC) guideline, Staff Accounting Bulletin 121 (SAB 121).

This resolution has been a barrier that limits banks that are interested in cryptocurrency custody services. In total, the vote had a result of 31 members in favor and 20 against. The resolution provides for the use of the Congressional Review Act to repeal what is considered an “illegal rule”.

American Republican Mike Flood, supporter of the resolution, criticized the SEC’s current position, highlighting: “The SEC has practically prevented the most regulated institutions from serving as custodians of digital assets. It’s time to reverse SAB 121 and stop Gary Gensler’s overreach.”

.@SECGov has virtually locked out the most regulated institutions from serving as custodians for digital assets. It’s time to roll back SAB 121 and to stop @GaryGensler’s overreach. pic.twitter.com/n3xWRhPMWq

— Rep. Mike Flood (@USRepMikeFlood) February 29, 2024

With bipartisan pressure from lawmakers aimed at repealing SEC SAB 121, the resolution was successfully passed and is now on its way to the House floor. This movement is considered crucial in the regulation of digital assets in the US.

Perianne Boring, founder of the Chamber of Digital Commerce, commented on the movement and emphasized the importance of this significant step in legislative evolution. “PROGRESS: SAB 121 passed the Committee today with bipartisan support! It is going to the Chamber plenary”, stated.

It is worth remembering that in December, a bipartisan group of US lawmakers took a significant step in the fight against terrorism by introducing a groundbreaking bill. This project aims to combat the emerging use of cryptocurrencies by foreign actors in financing terrorist activities. The legislation, called the Terrorist Financing Prevention Act, directly responds to the recent Hamas attacks against Israel, which occurred on October 7. Support comes from notable figures such as Senators Mitt Romney, Mark Warner, Mike Rounds and Jack Reed.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.