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The Senate voted 60-38 on the effort to overturn the SAB 121 policy.
Ripple Chief Legal Officer (CLO) Stuart Alderoty has heaped praises on the US Senate for choosing to take a stand against the Securities and Exchange Commission (SEC). That is, as it regards an ‘anti-crypto’ rule that the commission recently proposed.
The US SEC had proposed a controversial rule that threatened regulated banking institutions from offering crypto custodial services. However, the Senate has now overturned the rule after a dozen Democrats and 49 Republicans voted against the SEC’s Staff Accounting Bulletin (SAB) 121 on Thursday.
While there is yet a possibility that President Joe Biden may veto the Senate’s decision, Alderoty has commended the move, hailing it a win against SEC Chair Gary Gensler’s “unauthorized overreach”.
Finally, something D’s and R’s can agree on: Gensler’s unauthorized overreach when it comes to crypto will not be tolerated. https://t.co/oOdOGOyxmB
— Stuart Alderoty (@s_alderoty) May 16, 2024
SAB 121, Biden’s Influence
The overturned policy, known as SAB 121, sought to mandate banks to include their customers’ cryptocurrency holdings on their balance sheets. However, a huge backlash soon followed as the banking sector, alongside the crypto industry, kicked against the proposal. Their argument bordered on how the rule would complicate things, particularly in the area of custodial services. Not only that, banks also argued that the volatile nature of cryptocurrencies will have a negative effect on their financial statements.
Meanwhile, the Biden-led administration has said that it strongly opposes the Senate’s resolution. According to a statement by the White House, allowing the rule to be removed this way would disrupt the SEC’s ongoing “work to protect investors in crypto-asset markets and to safeguard the broader financial system.”
With this statement, the crypto community and even the banking sector may not sigh in relief just yet.
Growing Bipartisan Support for Crypto Regulation
It might be worth noting that bipartisan efforts in the crypto space are beginning to take form. Alderoty noted this in his post on X, where he shared the importance of bipartisan support in legislative efforts toward crypto.
Recall that the Senate voted 60-38 on the effort to overturn the SAB 121 policy. That reflects that US lawmakers are beginning to find a common ground for a balanced approach to regulating digital assets.
This unity is a game changer and may likely influence future legislation, including the highly-anticipated stablecoin bill, in favor of the crypto industry.
Alderoty is joined by other prominent industry leaders in their approval of the Senate’s decision. For instance, MicroStrategy co-founder Michael Saylor shared a similar sentiment, noting the need to protect the rights of cryptocurrency owners. SEC Commissioner Hester Peirce, popularly known as “Crypto Mom” also criticized the agency’s inconsistency.
