Senate Votes to Overturn SEC's Crypto Accounting Rule

Overview

• Joint Resolution 109, which passed the House, aims to repeal the SEC's Staff Accounting Bulletin 121.
• SAB 121 requires digital asset custodians to report liabilities and corresponding assets on their balance sheets.
• Critics argue the rule discourages banks from offering custodial services for cryptocurrencies, reducing consumer protection.
• The Senate vote saw several Democrats join Republicans, but the resolution is expected to be vetoed by President Biden.
• The SEC defends SAB 121, citing the need to address risks associated with safeguarding crypto assets.