- MicroStrategy co-founder Michael Saylor celebrates the cryptocurrency industry’s recent Senate win on social media.
- The Senate voted 60 to 38 to nullify the controversial “SAB 121” bulletin introduced by the Securities and Exchange Commission (SEC).
- The rule, which critics argue could damage the rights of crypto holders, requires banks safeguarding crypto assets to record them as a liability on their own balance sheets.
MicroStrategy’s Michael Saylor hails Senate’s decision to nullify SEC’s controversial rule, marking a significant victory for the cryptocurrency industry.
Senate Votes to Nullify Controversial SEC Rule
Earlier this Thursday, the Senate voted 60 to 38 to kill the controversial “SAB 121” bulletin introduced by the Securities and Exchange Commission (SEC). Senate Majority Leader Chuck Schumer (D-New York) as well as several Democrats joined the Republicans to shoot down the SEC guidance. The Digital Chamber, the leading blockchain trade association, was “thrilled” to celebrate the passage of the resolution to nullify SAB 121.
Implications of the SEC Rule
The controversial rule requires banks that safeguard crypto assets to record them as a liability on their own balance sheets. Critics argued that it would make it impossible for banks to provide custodial services for digital assets. According to Austin Campbell, the founder and managing partner of Zero Knowledge Consulting, the rule, which was unilaterally adopted by the SEC, would possibly damage the rights of crypto holders. “There is no economic rationale for holding capital against assets a firm does not own, and it was clearly done simply to block regulated financial entities from providing custodial services,” he said. He further noted that this guidance benefits non-regulated custodians.
Industry Reaction to Senate’s Decision
MicroStrategy co-founder Michael Saylor took to social media to celebrate the cryptocurrency industry’s recent Senate win. “Wall Street wants Bitcoin, the House of Representatives wants Bitcoin, and now the Senate wants Bitcoin,” he posted. Compound Labs Robert Leshner described this as “the first of many” legislative wins for the cryptocurrency industry.
Conclusion
The Senate’s decision to nullify the SEC’s controversial rule marks a significant victory for the cryptocurrency industry. It not only reflects the growing acceptance of cryptocurrencies but also paves the way for regulated financial entities to provide custodial services for digital assets. With this development, the industry looks forward to more legislative wins that will further strengthen the rights of crypto holders.
