The US Senate has overwhelmingly passed a bill repealing the Securities and Exchange Commission’s SAB 121, which would have prevented US banks from acting as custodians of their clients’ digital assets.
In 2022, the Securities and Exchange Commission (SEC) amended SAB 121 to require financial institutions that provide custody services for cryptocurrencies to maintain a 100% loss reserve. The SEC has required banks to account for this type of asset as a liability to customers.
On May 8, during the voting stage of the document in the US House of Representatives, President Joe Biden promised to veto the bill in order to “protect investors in the crypto asset markets and the US financial system as a whole.” If the president vetoes it, the document will return to Congress for re-debate. Overriding a veto would require support of a two-thirds majority.
In early May, former US President Donald Trump, at a meeting with his supporters at the Mar-a-Lago residence in Palm Beach , said that the current head of the White House has a very weak understanding of what cryptocurrencies are.
