According to CryptoPotato, U.S. Senator Cynthia Lummis has shown her support for Bitcoin legislation by posting 'Bitcoin laser eyes' on social media. This comes after the Senate passed H.J.Res. 109, a legislation aiming to overturn the SEC’s Staff Accounting Bulletin (SAB) No. 121. Senator Lummis, who represents Wyoming, is a known advocate for Bitcoin, viewing it as a reliable store of value and a protection against inflation. As a member of the Senate Banking Committee, she is pushing for a regulatory framework that encourages crypto innovation while protecting consumers.
The Senate recently passed legislation aimed at dismantling SAB 121, which imposes strict restrictions on financial institutions, preventing them from acting as custodians for digital assets like Bitcoin. H.J.Res. 109, under the Congressional Review Act, seeks to remove these barriers, allowing regulated financial firms to provide custody services for cryptocurrencies. Before the legislation was passed, Senator Lummis expressed her support for overturning SAB 121, criticizing it as a rule disguised as accounting guidance, implemented by SEC staff without majority commission approval.
Senator Lummis, along with Senator Ron Wyden of Oregon, recently wrote a letter to U.S. Attorney General Merrick Garland expressing concerns over the perceived divergence in the Department of Justice’s interpretation of 'money transmission' regulations. They argued that this deviation from FinCEN’s established definition could criminalize fundamental aspects of crypto networks, affecting responsible financial innovation in the U.S.
However, the White House has expressed its opposition to the passed legislation. A recent statement indicated that President Biden would veto the bill if it reached his desk, arguing that overturning SAB 121 would undermine the SEC’s efforts to protect investors in the crypto-asset markets and safeguard the broader financial system. Critics of SAB 121 believe that the rule is overly restrictive and limits financial institutions’ ability to meet the growing demand for Bitcoin services. They argue that these institutions, with their established compliance frameworks and security protocols, are well-equipped to manage the risks associated with digital asset custody. Despite the Senate’s approval, the future of H.J.Res. 109 remains uncertain due to the potential presidential veto. If President Biden follows through on his veto promise, it would halt the resolution’s progress, maintaining the current restrictions on financial institutions’ custody of digital assets.