The crypto industry is rejoicing following a surprising development in the US Senate. A vote of 60-38 led to the repeal of the SEC’s SAB 121 rule, a decision that has delighted many in the crypto community.

The Regulators Retreat

The defeated rule aimed to make banks classify digital assets held for clients as liabilities on their balance sheets. Industry experts and the Digital Chamber of Commerce argued that this rule would hinder innovation and restrict access to secure storage solutions for digital currency investors.

Austin Campbell, founder of Zero Knowledge Consulting, contended that the rule favored non-regulated custodians, potentially leaving crypto holders vulnerable.

A Bipartisan Victory: Democrats Embrace Crypto

Surprisingly, 12 Democrats crossed party lines to join Republicans in support of overturning the rule. This bipartisan cooperation underscores the increasing acceptance of cryptocurrency, especially after Bitcoin secured an exchange-traded fund earlier this year.

Michael Saylor, a prominent Bitcoin advocate and MicroStrategy co-founder, celebrated this unity by declaring that Bitcoin is desired by Wall Street, the House of Representatives, and now the Senate.

The Final Hurdle: Overcoming Potential Resistance

Although the Senate’s decision is a significant achievement, President Joe Biden’s potential veto poses a challenge. Biden has previously backed the SEC’s crypto regulation approach, hinting at a possible rejection of the resolution.

The outcome of this uncertainty remains unclear, with industry players cautiously optimistic. While this Senate win marks progress for crypto, the looming threat of a veto underscores the ongoing battle for mainstream acceptance of digital currencies.

As the cryptocurrency industry gains momentum in Washington, the journey toward regulatory clarity is still turbulent. The verdict on the potential veto will shape the direction of crypto in the US in the coming weeks.

Featured image from Getty Images, chart from TradingView