The Debate For Crypto Adpotion
Something huge is cooking up within the U·S· Senate right now: they’re currently debating on whether to cancel the SEC’s Staff Accounting Bulletin No. 121, AKA SAB 121, which was brought into existence in March 2022.
This Bill requires holders of crypto assets to report them as liabilities on their balance sheets. This has caused a bit of a stir within and around the financial ecosystem because many people in the crypto space think it’s making things unnecessarily complex and should be abolished.
The Resolution: H.J.Res. 109
So, the main character in this thriller is what we call: H.J.Res. 109, and before you begin to rack your heads for what that means; it is simply a resolution to eliminate this rule – The SAB 121. The H.J.Res was introduced by Congressman Mike Flood, a Republican, alongside Congressman Wiley Nickel, a Democrat· Yep, it’s bipartisan! Talk about a perfect tag-team.
Supporters’ Arguments: The Burden Of SAB 121
They concluded that SAB 121 is too much of a burden and is literally putting the brakes on innovation within the crypto space. They also believe that by eliminating this seemingly restrictive rule, digital asset transactions will be more secure and smoother, especially when being dealt with by regulated financial and economic establishments.
Presidential Veto Threat
The truth is that not everybody is optimistic as the Biden administration is not thrilled by the idea. They say that overturning the SEC’s rule would weaken protections for investors and further impact financial stability. President Biden has gone as far as affirming that he would veto the resolution if it landed on his desk. The decision has already passed in the House of Representatives and has now passed in the Senate (at the time of writing this).
This will bring about a major change in how digital assets are regulated in the U.S.
