US Senate reverses SEC ruling that prohibits firms from holding Bitcoin

The US Senate officially overturned a US Securities and Exchange Commission Rule that prevented financial institutions regulated by the SEC from holding Bitcoin and other crypto-currencies. This legislation is, H.J. Res. 109The US House had passed the bill last week.

This decision confirms that the SEC reversed its Staff Accounting Bulletin (SAB) No. 121. Subsequently the legislation against regulators received bipartisan support. Now, the resolution to invalidate the SEC’s old rule will be on the president’s desk.

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US Senate passes bill allowing regulated firms to hold bitcoin

In the past few years, there has been a tense relationship between the SEC and the digital assets market. This is in large part due to SEC’s dedication to regulation and enforcement. The industry is mired in legal disputes and ongoing lawsuits against the agency.

Now the US Government has taken actions against one the most disapproving rule of the agency. US Senate votes to repeal SEC rules that prohibit regulated firms from holding Bitcoins and other crypto currencies.

Senat leader conducted Thursday a voting to repeal the SEC rule which had been in force for two years. The SEC’s guideline was reversed with bipartisan approval. It revived an old vote in the Senate, currently controlled by Democrats. The Senate had voted 60 to 38.

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The US House of Representatives, which is controlled by Republicans in the US, had advanced the bill to the Senate on 8 May. The legislative rebuttal to the SEC rule passed with a 228–182 vote but now faces its final test on the desk of US President Joe Biden.

According to media reports, up until now, the White House indicated that it is likely the measure would be vetoed. Reports indicate that the White House has indicated the measure will likely be vetoed.