Senate Strikes Down Controversial Crypto Rule in Win for Industry
The U.S. Senate has delivered a significant victory to the cryptocurrency industry by overturning a controversial rule proposed by the Securities and Exchange Commission (SEC). The rule, known as Staff Accounting Bulletin No. 121 (SAB 121), would have required banks to list their customers’ crypto holdings on their balance sheets.
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Rule Deemed Overreaching by Industry Experts
The prospect of SAB 121 faced strong opposition from both banks and crypto companies. Critics argued that forcing banks to account for customers’ crypto assets would unnecessarily complicate custodial services and potentially distort banks’ financial statements due to crypto’s volatility. Industry leaders like MicroStrategy co-founder Michael Saylor applauded the Senate’s decision, emphasizing the importance of protecting crypto ownership rights.
Ripple’s CLO Hails Bipartisan Effort
Ripple’s Chief Legal Officer, Stuart Alderoty, praised the Senate’s action, highlighting the bipartisan support for overturning the rule. This vote, according to Alderoty, demonstrates a growing consensus among U.S. lawmakers on the need for a balanced approach to regulating digital assets. He emphasized the importance of such unity, especially considering upcoming legislation like the highly anticipated stablecoin bill.
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“Crypto Mom” Commissioner Questions SEC’s Approach
SEC Commissioner Hester Peirce, known for her pro-crypto stance, took the opportunity to criticize the SEC’s inconsistent approach to regulating crypto custody services. This criticism echoes Alderoty’s concerns about potential overreach by the SEC under Chairman Gary Gensler.
A Move Towards Measured Regulation?
The Senate’s decision to overturn SAB 121 is seen as a preventive measure against potential stifling regulation. Critics argued that the rule could discourage innovation and negatively impact crypto adoption. This legislative action could pave the way for a more measured and informed approach to cryptocurrency regulation, something Alderoty believes will ultimately support the growth and mainstream acceptance of cryptocurrencies.
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