US Senator Cynthia Lummis recently showed her support for Bitcoin by posting "laser eyes" on social media, a symbol of enthusiasm for the cryptocurrency. This comes after the Senate passed legislation aimed at overturning a restrictive banking policy that hindered the growth of the crypto industry.

Senator Lummis, a long-time advocate for Bitcoin, believes it is a reliable store of value and a safeguard against inflation. As a member of the Senate Banking Committee, she is working to establish a regulatory framework that promotes crypto innovation while protecting consumers.

The recently passed legislation, H.J.Res. 109, targets the Securities and Exchange Commission's (SEC) Staff Accounting Bulletin (SAB) No. 121, which imposed strict restrictions on financial institutions, preventing them from acting as custodians for digital assets like Bitcoin. The new legislation aims to eliminate these barriers, allowing regulated financial firms to provide custody services for cryptocurrencies.

Senator Lummis has been vocal about her support for overturning SAB 121, calling it a rule that was created and implemented by SEC staff without majority commission approval. She has also expressed concerns over the Department of Justice's interpretation of "money transmission" regulations, which could criminalize fundamental aspects of crypto networks and hinder responsible financial innovation in the US.

However, the White House has expressed opposition to the passed legislation, with President Biden indicating that he would veto the bill if it reached his desk. He believes that overturning SAB 121 would undermine the SEC's efforts to protect investors in the crypto-asset markets and safeguard the broader financial system.

Despite the Senate's approval, the future of H.J.Res. 109 remains uncertain due to the potential presidential veto. If President Biden follows through on his veto promise, it would stop the resolution's progress, maintaining the current restrictions on financial institutions' custody of digital assets. However, if he signs the bill into law or takes no action, the legislation would become law, paving the way for financial institutions to provide custody services for cryptocurrrencies.