Crypto is taking center stage this week as the White House will need to deal with a bill that passed the House and the Senate which rolls back an SEC rule known as Staff Accounting Bulletin 121 (SAB 121) that requires banks to place crypto on their balance sheets as liabilities raising their capital requirements. The American Bankers Association (ABA) joined the crypto community in opposing SAB 121.

Two weeks ago, the House led the effort to reverse the SEC rule when it passed a resolution of Congressional disapproval on a bipartisan vote of 228YES to 183NO. Twenty-one Democrats joined the Republican majority in voting for the resolution. However, before the vote the White House issued a Statement of Administration Policy saying that the President viewed the SEC rule as an important tool “to protect investors in crypto-asset markets.” Here’s a link to the White House veto threat.

Despite the Biden veto threat, the Senate Democratic Leader, New York Senator Chuck Schumer, brought the House-passed resolution up for a vote in the Senate on Thursday and it passed the Senate with a strong bipartisan vote. 12 Democratic Senators, including Leader Schumer, voted with 48 Republicans to pass the House Resolution on a vote of 60 to 38.

What surprised many is that Senator ...

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