US Senate's Bipartisan Push to Review SEC Crypto Regulation Signals Potential Shift in Biden Administration's Stance

On May 16, 2024, the United States Senate passed H.J.Res. 109 with a notable 60-38 majority vote, signalling strong bipartisan support for the review of the Securities and Exchange Commission (SEC) Staff Accounting Bulletin No. 121 (SAB 121). Despite President Biden's prior threat of a veto, the overwhelming support for the resolution, including from within his own party, has put pressure on the administration to reconsider. The bipartisan nature of the vote, with 51 Democrats supporting it, indicates a significant shift in attitudes towards cryptocurrency regulation within Congress. The potential veto threat looms over the decision-making process, but there are indications that the Biden administration may reassess its stance, particularly given the evolving political landscape surrounding crypto regulation and the upcoming elections. Additionally, the possibility of the SEC revoking SAB 121 presents an alternative solution that could alleviate the need for a presidential veto.