United States Senators, in a vote of 60 to 38, have passed H.J. Res. 109, a resolution that nullifies the U.S. Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin No. 121. This ruling required banks to include customers’ digital assets on their balance sheets, with capital reserved against them. Many lawmakers and industry leaders have criticized this as a hindrance to innovation. The Blockchain Association, a crypto advocacy group, stated that the overwhelming support for the resolution in the Senate sends a strong message that both houses of Congress disapprove of this rule.
However, before the resolution can become law, it must also pass in the U.S. House of Representatives. President Joe Biden has expressed his intention to veto the bill in order to protect investors in crypto-asset markets and safeguard the broader financial system. Despite this, Perianne Boring, founder and CEO of the Blockchain Trade Association Digital Chamber, believes that the support from 21 Democratic Party senators could push the White House to reconsider its strategy. She believes that the tide is turning for crypto in Washington.
The pressure on the Biden administration extends beyond the political arena, as the crypto community is not the only group hoping for the signing of H.J. Res. 109. The American Bankers Association has openly urged President Biden to quickly sign the resolution into law to protect American consumers.
In other news, the State of Wisconsin Investment Board (SWIB) has reported investments in spot Bitcoin exchange-traded funds (ETFs) offered by Grayscale and BlackRock. The SWIB, which manages Wisconsin’s state trust funds, disclosed that it holds over 2.4 million shares in the BlackRock iShares Bitcoin Trust and more than 1 million shares in the Grayscale Bitcoin Trust, valued at approximately $100 million and $64 million respectively. With over $156 billion in assets under management, the SWIB allocated about 48% to public equity investments, with other investments including shares of stock in Coinbase, MicroStrategy, and CleanSpark.
Meanwhile, Venezuela’s Ministry of Electric Power has announced plans to disconnect cryptocurrency mining farms from the national grid. This move is aimed at regulating excessive energy consumption and ensuring a stable power supply for the population. According to a post from Venezuela’s National Association of Cryptocurrencies, crypto mining is now prohibited in the country. This decision follows a recent crackdown where 2,000 cryptocurrency mining devices were confiscated in Maracay as part of an anti-corruption initiative. The ministry emphasizes the need for efficient and reliable electrical service across the country, as the national power supply has been unstable for the past decade.
Lastly, Microsoft is facing the possibility of a multibillion-dollar fine in the European Union if it fails to respond to a request for information by May 27. The threat comes from a request made under the EU’s Digital Services Act regarding Microsoft’s Bing search engine and its generative artificial intelligence (AI) services. The European Commission wants Microsoft to provide information on the risks associated with Bing’s generative AI features, specifically “Copilot in Bing” and “Image Creator by Designer.” Failure to comply could result in a fine of up to 1% of Microsoft’s annual revenue in the EU.