The Senate has overwhelmingly voted to dismantle the Securities and Exchange Commission's rule known as SAB121.

The United States Senate formally expressed their disapproval of the controversial staff accounting bulletin (SAB121) issued by the Securities and Exchange Commission (SEC) on Monday afternoon. The decision followed prolonged scrutiny of the federal agency’s guidelines.The vote garnered significant bipartisan support, with Democratic Senators Chuck Schumer (NY), Cory Booker (NJ), and Kirsten Gillibrand (NY) voting in favor of effectively reversing the bulletin.Originally released in April 2022, the SEC maintains that SAB121 aims to protect digital asset usage. However, crypto-friendly lawmakers have criticized the federal agency’s rhetoric.Critics argue that the capital requirements outlined in SAB121 are excessive, as banks are compelled to list clients’ custodied assets alongside liabilities on their balance sheets.Furthermore, lawmakers have expressed their dissatisfaction with the SEC’s non-compliance with procedural rules regarding SAB121’s creation, as revealed in a recent Government Accountability Office (GAO) report.The vote follows a similar measure passed by the House earlier in the week, spearheaded by Representatives Mike Flood (R-NE) and Wiley Nickel (D-NC).