Senate Votes to Overturn SEC's Crypto Accounting Rule

The bipartisan resolution seeks to invalidate SAB 121, which mandates digital assets be recorded on balance sheets, but faces a likely veto from President Biden.

Joint Resolution 109, which passed the House, aims to repeal the SEC's Staff Accounting Bulletin 121.
SAB 121 requires digital asset custodians to report liabilities and corresponding assets on their balance sheets.
Critics argue the rule discourages banks from offering custodial services for cryptocurrencies, reducing consumer protection.
The Senate vote saw several Democrats join Republicans, but the resolution is expected to be vetoed by President Biden.
The SEC defends SAB 121, citing the need to address risks associated with safeguarding crypto assets.