The U.S. Senate voted to formally issue a disapproval of the United States Securities and Exchange Commission’s (SEC) controversial staff accounting bulletin SAB121 on Monday afternoon following long standing scrutiny of the federal agency’s guidelines.
Thursday’s vote garnered significant bipartisan support, with Democratic Senators Chuck Schumer (NY), Cory Booker (NJ), and Kirsten Gillibrand (NY) voting in favor of the effective “reversal.”
Launched in April 2022, the SEC claims SAB121 is meant to safeguard digital asset use, though crypto-friendly lawmakers have pushed back against the federal agency’s rhetoric.
Critics argue that capital requirements on financial institutions brought forward by SAB121 go too far, with banks required to list clients’ custodied assets with liabilities on their balance sheet.
Lawmakers have further condemned the commission’s failure to follow procedural rules in SAB121’s creation as the Government Accountability Office (GAO) recently found that the SEC did not report the rule change under the Congressional Review Act (CRA).
The vote comes just a little over a week after the House voted on a companion bill brought forth by Representatives Mike Flood (R-NE) and Wiley Nickel (D-NC).
Editorial note: This story is currently being added to. For the full story check back soon as we add more information and/or perspectives from those involved.
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