The United States Securities and Exchange Commission (SEC) encountered a significant setback as its proposed anti-crypto bill, Staff Accounting Bulletin No.121 (SAB121), faced resounding rejection from the United States Senate. Stuart Alderoty, Chief Legal Officer (CLO) of Ripple, openly hailed this outcome as a notable triumph for the cryptocurrency industry.

Introduced by the SEC on March 31, 2022, SAB121 sought to mandate financial institutions handling clients' crypto assets to register or record these digital assets as liabilities on their balance sheets. This move, viewed as a threat to the decentralized nature of the cryptocurrency industry and US regulatory custodial services, was vehemently denounced by Alderoty as an "unauthorized overreach" by SEC Chair Gary Gensler.

In a nearly unanimous decision backed by bipartisan support, both the Senate and the House of Representatives adamantly voted against the contentious SAB-121 proposal. Paul Grewal, Chief Legal Officer of Coinbase, took to Twitter to reveal that the Senate repealed the proposal with approximately 60 yes votes, while also condemning the SEC's "overreach and disdain for federal administrative law."

Alderoty celebrated the Senate's rejection of the SEC's anti-crypto bill, asserting that Gensler's attempt to exert control over the cryptocurrency industry had crossed a line. He emphasized that the regulator's persistent efforts to regulate an industry beyond its purview would no longer be tolerated, stressing that technological innovation should not be subjected to politicization.

Michael Saylor, Co-founder and former CEO of MicroStrategy, echoed his approval of the Senate's bipartisan decision on Twitter, noting 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 marks a significant setback to the regulator's aggressive stance on cryptocurrency regulation. This defeat comes amid the agency's ongoing legal battle with Ripple and a series of enforcement actions and lawsuits against various cryptocurrency companies, including UniSwap, Coinbase, Binance, and MetaMask.

Moreover, the nullification of the bill underscores the escalating influence of the crypto industry in both technological and political realms, solidifying its recognition among lawmakers and traditional banking institutions in the US.

In a separate Twitter post, John E. Deaton, a pro-XRP lawyer and supporter, lambasted the SEC's aggressive enforcement actions on the crypto industry as "regulatory insanity." He argued that the SEC was being manipulated by Senator Elizabeth Warren, a vocal crypto critic, to advance her political agendas. Deaton contended that Warren's purported aim to "protect investors" through SAB-121 was dubious, alleging that the SEC's actions had inflicted more financial harm on investors, suggesting that Warren prioritized her agendas over investor protection.