Breaking: Senate votes overwhelmingly on SEC’s SAB121

The United States Senate voted Thursday to formally reject SAB121, the Securities and Exchange Commission’s (SEC) controversial accounting workforce bill that now heads to President Joe Biden’s desk.

Will Joe Biden Approve SAB121 After Senate Vote? Thursday’s vote received bipartisan support; Democratic Senators Chuck Schumer (NY), Cory Booker (NJ) and Kirsten Gillibrand (NY) voted to “reform” strict rules on digital wealth.

The vote, defeated by Sen. Cynthia Lummis (R-WY), came just a week after the House voted on a companion bill introduced by Reps. Mike Flood (R-NE) and Wiley Nickel (D-NC).

In testimony earlier this month, Flood said: “SAB 121 sets a dangerous precedent and is not an appropriate tool for providing accounting guidance to digital asset managers.”

Bill is currently on President Joe Biden’s desk, but its success looks bleak after a May 8 letter from the White House stating that Biden would veto the bill.

“Reducing the SEC’s ability to provide an effective and efficient regulatory framework for crypto assets would create financial instability and market uncertainty,” the letter reads.

MPs via SEC and SAB121 in hot water

The SEC says SAB121 aims to protect the use of digital assets, but crypto-enabled lawmakers took issue with the federal agency’s words.

Critics say the investment requirements set by SAB121 for financial institutions go too far, requiring banks to disclose the assets of their borrowers on their balance sheets.

“Limiting banks’ ability to provide these services provides customers with less regulated, secure options for protecting their digital assets, ultimately resulting in increased risk,” the
Financial Industry and Markets Association wrote in a May 14 letter.

Lawmakers again criticized the committee’s failure to meet the statutory requirements to enact SAB121, as GAO recently determined that the SEC failed to notify rule changes under the Congressional Review Act (CRA).

“It is unfortunate that the SEC attempted to circumvent the decision-making process by misrepresenting SAB 121 as non-union guidance,” Flood continued.

While Biden may block the repeal of SAB121, the strong expression of bipartisan support for the measure on Thursday may indicate hope for advancing crypto legislation in general.
Perianne Boring, founder and CEO of
Digital Chamber, said: “If anyone can convince POTUS to sign, it’s Schumer. We have a chance to see this at the end. ”