The proposal, championed by Senators Wiley Nickel and Cynthia Lummis alongside Representative Mike Flood, holds the belief that this legislative amendment could significantly impact the acceptance and integration of cryptocurrencies within society and large-scale businesses.
Under the current regulatory framework, the SEC possesses the authority to require financial institutions not only to record equivalent liabilities on their balance sheets for each digital asset they hold but also to include them in their customer liability reserves.
“Critics of the SEC requirement argue that it undermines the operational feasibility of custody services in the digital asset market. The rule undoubtedly impedes the growth of reputable and regulated companies, thus preventing them from offering essential cryptocurrency services to Americans,” highlighted Perianne Boring, CEO of the Chamber of Digital Commerce, in response to the senators’ groundbreaking proposal.
Meanwhile, Senator Elizabeth Warren, a leading opponent of cryptocurrency innovation in Congress, called upon the Senate Banking Committee to support her legislation aimed at combating illicit forms of digital asset utilization during a recent meeting.