# Senate Votes to Repeal SEC Crypto Rule

*Author: William M. Peaster*
*Published: May 16, 2024*
*Source: https://www.bankless.com/de/senate-repeals-sec-rule*

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The U.S. Senate joined the House of Representatives in voting to [approve a resolution](https://www.coindesk.com/policy/2024/05/16/us-senate-votes-to-kill-secs-crypto-accounting-policy-testing-bidens-veto-threat/) to overturn the SEC's controversial crypto accounting policy, SAB 121. All eyes turn now to President Biden, who has previously said he would veto the resolution.

## **What’s the scoop?**
- In a 60-38 vote, the Senate just moved to repeal the SEC’s Staff Accounting Bulletin No. 121 (SAB 121), a policy requiring firms that custody crypto to record customer holdings on their balance sheets as *liabilities*. 
- With Republicans leaning harder into pro-crypto positions lately, it’s notable that a dozen Democrats, including Senate Majority Leader Chuck Schumer (D-N.Y.), voted against SAB 121, reflecting bipartisan opposition to the policy. 
- In a [recent statement](https://www.whitehouse.gov/wp-content/uploads/2024/05/SAP-HJRes109.pdf), President Biden said he would veto the resolution as it could “constrain the SEC’s ability to ensure appropriate guardrails and address future issues related to crypto-assets.”

## **Bankless take:**
This vote is notable for many reasons. It’s the [first crypto bill to pass both houses of Congress](https://twitter.com/AlexanderGrieve/status/1791147474243162279). It’s a big win for the space against an increasingly hawkish SEC. It shows growing bipartisan interest in shaping crypto policy. Plus, it offers President Biden, increasingly seen as unfriendly to crypto, a chance to sign a pro-crypto bill into law. 

The grand question now is whether President Biden will relent on his veto promise. Of course, his appetite may have dwindled upon high-profile Democrats coming out in favor of the resolution, and Senate Majority Leader Chuck Schumer has the President’s ear, so he may back down. If President Biden *does* veto the resolution, look for his legacy on crypto to take another big hit and for potential override attempts in Congress in the coming months. 

> SAB 121 CRA —first standalone crypto bill ever to pass both chambers of Congress—SAILS through the Senate 60-38. Dems voting for CRA/against WH & SEC:**Schumer**GillibrandHickenlooperPetersTesterSinemaRosenKelly CaseyBookerLujanWyden(Biden still expected to veto) [pic.twitter.com/maxjgVSXqP](https://t.co/maxjgVSXqP)— Alexander Grieve (@AlexanderGrieve) [May 16, 2024](https://twitter.com/AlexanderGrieve/status/1791147474243162279?ref_src=twsrc%5Etfw)