In a significant victory for the cryptocurrency industry, the US Senate has overwhelmingly rejected a controversial bill proposed by the Securities and Exchange Commission (SEC). The bill, aimed at regulating cryptocurrency assets, was seen as a threat to the industry's decentralized nature and US regulatory custodial services. Ripple's Chief Legal Officer, Stuart Alderoty, has celebrated this outcome, marking it a major win for the crypto community.

The SEC's proposed bill, Staff Accounting Bulletin No.121 (SAB121), required financial institutions to record or register digital assets as liabilities on their balance sheets. However, the Senate and House of Representatives voted against the proposal with bipartisan support, labeling it an "unauthorized overreach" by SEC Chair Gary Gensler. Coinbase's Chief Legal Officer, Paul Grewal, disclosed that the Senate voted for repeal with a supermajority, adding a rebuke for the SEC's "overreach and disdain for federal administrative law."

Alderoty commended the Senate's decision, emphasizing that Gensler's attempts to control the cryptocurrency industry were getting out of hand. He stressed that technological innovation should not be a partisan issue and that the regulator's ongoing efforts to govern an industry beyond its purview would no longer be tolerated. MicroStrategy's Co-founder, Michael Saylor, also celebrated the Senate's decision, stating that "Wall Street wants Bitcoin, the House of Representatives wants Bitcoin, and now the Senate wants Bitcoin."

The failure of the SEC's proposed bill represents a significant blow to the regulator's aggressive stance on cryptocurrency regulation. This comes amid the agency's legal battle with Ripple and a series of enforcement actions and lawsuits against cryptocurrency companies. The nullified bill highlights the growing influence of the crypto industry in both technological and political circles, securing recognition among lawmakers and traditional banking institutions in the US. Pro-Ripple lawyer John E. Deaton described the SEC's actions as "regulatory insanity," stating that the regulator was being used as a weapon by Senator Elizabeth Warren to support her political agendas.