The United States Securities and Exchange Commission (SEC) has experienced another embarrassing setback, as an anti-crypto bill proposed by the regulator has been completely shut down by the United States Senate. Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, has openly celebrated this outcome, marking it a noteworthy victory for the cryptocurrency industry.
SEC’s Anti Crypto Bill Falters
On March 31, 2022, the US SEC proposed a Staff Accounting Bulletin No.121 (SAB121), requiring financial institutions responsible for the crypto assets of clients to record or register these digital assets as liabilities on their balance sheets. This bill, viewed as a threat to the decentralized nature of the cryptocurrency industry and US regulatory custodial services, was labeled by Alderoty as an “unauthorized overreach” by the SEC Chair, Gary Gensler.
In an almost unanimous decision with Bipartisan support, the Senate and the House of Representatives voted vehemently against the controversial SAB-121 proposal.
Paul Grewal, the Chief Legal Officer of crypto exchange, Coinbase, disclosed in a post on X (formerly Twitter) that the Senate voted for repeal, achieving a supermajority with approximately 60 yes votes and an added rebuke for the SEC’s “overreach and disdain for the federal administrative law.”
Furthermore, Alderoty commemorated the Senate’s rebuff of the SEC’s anti-crypto bill, emphasizing that Gensler’s attempt to control the cryptocurrency industry was getting out of hand. He also stated that the regulator’s ongoing efforts to govern an industry beyond its purview would not be tolerated anymore, highlighting that technological innovation should not be a partisan issue.
MicroStrategy’s Co-founder and former Chief Executive Officer (CEO), Michael Saylor also commented on the SEC’s revoked bill in an X post, celebrating the Senate’s bipartisan decision.
“Wall Street wants Bitcoin, the House of Representatives wants Bitcoin, and now the Senate wants Bitcoin,” Saylor stated.
Currently, the failure of the SEC’s proposed bill represents a significant blow to the regulator’s aggressive stance on cryptocurrency regulation. This comes on the heels of the agency’s legal battle with Ripple and a series of enforcement actions and lawsuits against cryptocurrency companies such as UniSwap, Coinbase, Binance, MetaMask and more.
Moreover, the nullified bill highlights the growing influence of the crypto industry in both technological and political circles, securing recognition among lawmakers and traditional banking institutions in the US.
Pro-Ripple Lawyer Calls SEC Actions “Regulatory Insanity”
In another X post, John E. Deaton, a pro-XRP lawyer and supporter, has described the SEC’s aggressive enforcement actions on the crypto industry as “regulatory insanity.” He disclosed that the US SEC was being used as a weapon by Senator Elizabeth Warren, a crypto antagonist to support her political agendas.
As the spokesperson for the SEC’s SAB-121 bill, Warren had expressed support for the anti-crypto proposal, arguing that by approving the rule, investors would have better protection against risks associated with cryptocurrency volatility.
Deaton has disclosed that the SEC’s attempt to “protect investors” was laughable given that the regulator has caused more financial distress to the investors it claims to protect. He has also stated that Warren was placing her agendas above investor protection.
Chart from Tradingview.com