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Resolution to Roll Back Anti-Crypto Banking Policies
The recent approval by the U.S. House of Representatives of a resolution urging the Securities and Exchange Commission (SEC) to reverse its anti-crypto banking policies has stirred significant debate. The resolution, aimed at overturning a 2022 SEC bulletin, received bipartisan support, with a vote of 228-182. This move has been met with praise from crypto advocates both within and outside Capitol Hill.
Amanda Russo, the director of communications for the Crypto Council for Innovation, emphasized the significance of the House’s disapproval resolution. According to Russo, this resolution reflects the importance of subjecting major regulatory changes to the proper public rulemaking process, which is crucial for maintaining a competitive and innovative financial landscape.
Despite the positive reception of the resolution, the White House issued a preemptive statement expressing strong opposition to its passage. The Biden administration firmly stated their objection to the resolution, highlighting the SEC’s role in protecting investors in the crypto-asset markets and ensuring the overall stability of the financial system.
Dispute Over Staff Accounting Bulletin (SAB) 121
The focal point of the disagreement lies in the Staff Accounting Bulletin (SAB) 121 issued by the SEC in April 2022. This bulletin addresses unique risks and uncertainties associated with crypto-assets, emphasizing the need for a comprehensive regulatory framework specific to this sector. While staff accounting bulletins are typically meant to provide clarification on existing rules, SAB 121 is perceived as a new rule with significant implications for the financial and digital asset industries.
Representative Mike Flood (R-Nebraska) introduced a resolution condemning SAB 121 in the House, with a similar resolution being put forth in the Senate. Critics, including Rep. Tom Emmer, argue that SAB 121 introduces unnecessary concentration risk into the digital asset ecosystem, potentially undermining market fairness and efficiency.
Emmer, a longstanding critic of the SEC, has emphasized the importance of consumer protection and innovation in digital asset markets. He sees the House resolution as a critical step towards curbing what he perceives as regulatory overreach by the SEC, particularly under the leadership of SEC Chair Gary Gensler.
In the midst of conflicting perspectives on the implications of SAB 121 and the regulatory role of the SEC, the resolution stands as a testament to the ongoing dialogue between policymakers and industry stakeholders in shaping the future of crypto-assets regulation.
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