U.S. Senator Cynthia Lummis, a known Bitcoin advocate, has shown support for crypto-friendly laws following the Senate's passing of H.J.Res. 109. This legislation aims to overturn the SEC's Staff Accounting Bulletin (SAB) No. 121, which imposes strict restrictions on financial institutions acting as custodians for digital assets like Bitcoin. The new law seeks to remove these barriers, enabling regulated firms to provide custody services for cryptocurrencies.

Despite the Senate's approval, the future of H.J.Res. 109 is uncertain due to potential opposition from the White House. President Biden could veto the bill, arguing that overturning SAB 121 might undermine the SEC's efforts to protect investors and the broader financial system. Critics, however, believe SAB 121 is overly restrictive and hinders financial institutions from meeting the growing demand for Bitcoin services.

The unfolding legislative landscape reflects the growing recognition of cryptocurrencies and their potential to foster financial innovation. The outcome of this legislation could significantly impact the future of digital assets in the U.S. financial system.