The United States Securities and Exchange Commission (SEC) suffered another significant setback as an anti-crypto bill proposed by the regulator faced a complete rejection by the United States Senate. Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, openly celebrated this outcome, considering it a notable victory for the cryptocurrency industry.

The SEC's proposed Staff Accounting Bulletin No.121 (SAB121), introduced on March 31, 2022, aimed to compel financial institutions handling clients' crypto assets to register or record these digital assets as liabilities on their balance sheets. This move, perceived as a threat to the decentralized nature of the cryptocurrency industry and US regulatory custodial services, was denounced by Alderoty as an "unauthorized overreach" by SEC Chair Gary Gensler.

In a nearly unanimous decision with bipartisan support, both the Senate and the House of Representatives vehemently voted against the contentious SAB-121 proposal. Coinbase's Chief Legal Officer, Paul Grewal, revealed on Twitter that the Senate repealed the proposal with approximately 60 yes votes, while also condemning the SEC's "overreach and disdain for federal administrative law."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 hailed the Senate's rejection of the SEC's anti-crypto bill, stating that Gensler's attempt to exert control over the cryptocurrency industry was becoming excessive. He emphasized that the regulator's ongoing efforts to regulate an industry beyond its scope would no longer be tolerated, asserting that technological innovation should not be politicized.

MicroStrategy's Co-founder and former CEO, Michael Saylor, also expressed his approval of the Senate's bipartisan decision in a post on Twitter, remarking 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 setback to the regulator's aggressive stance on cryptocurrency regulation. This setback comes amidst the agency's legal battle with Ripple and a series of enforcement actions and lawsuits against various cryptocurrency companies such as UniSwap, Coinbase, Binance, and MetaMask.

Furthermore, the nullification of the bill underscores the growing influence of the crypto industry in both technological and political spheres, securing recognition among lawmakers and traditional banking institutions in the US.

In another post on Twitter, pro-XRP lawyer and supporter John E. Deaton criticized 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 crypto antagonist, to advance her political agendas. Warren, as the spokesperson for the SEC's SAB-121 bill, advocated for the proposal, claiming it would enhance investor protection against cryptocurrency volatility risks. However, Deaton contended that the SEC's purported aim to "protect investors" was questionable, as the regulator had caused more financial distress to the investors it purportedly sought to safeguard, alleging that Warren prioritized her agendas over investor protection.