Bipartisan Effort Aims to Reverse SEC Crypto Regulations

The Legislative Challenge to SEC's Crypto Directives

In a notable development for the US crypto landscape, North Carolina Representative Wiley Nickel has spearheaded a bipartisan Congressional Review Act (CRA) resolution. With the support of Senator Cynthia Lummis and Representative Mike Flood, this resolution has the potential to dismantle the SEC's stringent requirement for banks to list client crypto holdings as part of their balance sheets. This reform could be a significant step toward the broader institutional embracement of Bitcoin and other virtual assets.

Critique and Advocacy from the Crypto Sector

The digital asset industry has voiced strong objections to the SEC's March 2022 bulletin, known as SAB 121, which demands balance sheet equivalence for each digital asset held by financial institutions. The Chamber of Digital Commerce, helmed by Perianne Boring, has notably expressed criticism. This legislative action endorses the Chamber's position that eliminating such barriers is key to making digital currencies more broadly available in the US.

United Front Against SEC's Overreach

This resolution reflects a unified stance against the SEC's recent directive, asserting that the commission overstepped its rulemaking bounds. The Chamber of Digital Commerce, through the Token Alliance, has been vigorously pushing back against SAB 121. US Republican Mike Flood and Patrick McHenry, chair of the Financial Services GOP, have highlighted bipartisan agreement on the issue - emphasizing the need to protect digital asset consumers and promote clarity in the rapidly evolving crypto regulatory landscape.