Ramazan Eles 
In a significant blow to the Securities and Exchange Commission (SEC), the US Senate voted to overturn a rule that would have made it more difficult for banks to offer crypto custody services.
The Senate voted 60-38 to overturn the rule, known as Staff Accounting Bulletin (SAB) 121, which was issued by the SEC in 2022. The rule had been met with strong opposition from the crypto industry, which argued that it would stifle innovation and make it more difficult for institutional investors to access cryptocurrencies.
SAB 121 Provisions
Under SAB 121, crypto custodians would have been required to treat cryptocurrencies as liabilities on their balance sheets. This would have made it more difficult for banks to offer crypto custody services, as it would have increased their capital requirements.
The vote to overturn SAB 121 was bipartisan, with both Democrats and Republicans voting against the rule. This suggests that there is strong opposition to the SEC’s approach to crypto regulation in both chambers of Congress.
The Senate’s vote is expected to be sent to President Joe Biden, who has previously indicated that he is supportive of the crypto industry. It is likely that Biden will veto the rule, which would mean that it would not go into effect.
Implications for Crypto Industry
The Senate’s vote is a major victory for the crypto industry and is likely to be seen as a sign that Congress is supportive of innovation in the space. It is also a blow to the SEC, which has been criticized for its heavy-handed approach to crypto regulation.