According to Odaily, a resolution proposed by the US House of Representatives is expected to pass in a Senate vote. The resolution aims to revoke Staff Accounting Bulletin 121 (SAB 121) previously issued by the US Securities and Exchange Commission (SEC). SAB 121 requires companies to record the crypto assets they hold on their balance sheets. Critics argue that this regulation is overly strict and essentially hinders major custodians and companies from holding crypto assets for their clients. Last week, the House of Representatives voted to advance this resolution.
Sources indicate that the Senate may vote on the resolution later on Thursday morning, and it is currently in a favorable position in the Senate. It is expected that several Democratic senators will vote in favor. If the resolution is ultimately passed and signed by President Biden, the SEC will be prohibited from issuing any similar guidelines. However, the White House has previously threatened that Biden will exercise his veto power once the resolution is passed in the Senate. Despite the veto threat, 21 House Democrats and the majority of Republicans voted in favor of advancing the resolution, highlighting the complexity and controversy of the issue. The industry generally believes that SAB 121 imposes unreasonable restrictions on the development of the crypto industry.