US House Votes to Reshape Digital Assets Regulation with Resolution H.J.Res. 109

Thursday, 9 May 2024, 04:19

The US House of Representatives passed a bipartisan resolution to overturn the SEC's accounting rule for digital assets, sparking a battle of legislative support versus a potential presidential veto. Advocates argue that removing the rule will facilitate safer digital asset transactions, while opposition warns of financial instability without robust regulatory oversight. The ongoing debate over regulation and innovation in the crypto sector is intensifying with the resolution's movement to the Senate.
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US House Votes to Reshape Digital Assets Regulation with Resolution H.J.Res. 109

US House Passes Resolution to Overturn SEC's Crypto Regulation Rule

The US House of Representatives has taken a significant step toward reshaping the regulation of digital assets by passing Representative Mike Flood's bipartisan resolution, H.J.Res. 109, on May 8. This resolution seeks to overturn the Securities and Exchange Commission's (SEC) Staff Accounting Bulletin (SAB) 121, which has been a point of contention within the financial and crypto communities.

Legislative Support vs. Presidential Veto: The Battle Over SAB 121

Under SAB 121, issued in March 2022, financial institutions must include customers' digital assets on their balance sheets. Critics argue this accounting requirement causes significant operational and financial challenges. By overturning SAB 121, supporters of H.J.Res. 109 believe it will remove regulatory barriers and facilitate safer digital asset transactions through regulated banks and financial institutions.

Lawmakers Critique SEC's Crypto Crackdown

Criticism of the SEC's recent actions extends to its handling of major crypto platforms like Robinhood, with some arguing that the regulatory agency is overstepping its mandate. This ongoing debate between regulation and innovation in the crypto sector is further amplified by the perspectives of various legislators and government bodies.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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