In a significant win for the cryptocurrency industry, the US Senate has voted to overturn a controversial rule proposed by the Securities and Exchange Commission (SEC). The rule, known as SAB 121, would have forced banks to list their customers' crypto assets on their balance sheets, a move widely criticized as an overreach by the SEC.

Ripple's Chief Legal Officer, Stuart Alderoty, praised the Senate's decision, calling it a victory against the SEC's attempted overreach. Alderoty had previously characterized the rule as an "unauthorized overreach" by SEC Chairman Gary Gensler. The vote to cancel the rule was seen as a preventive measure against potential overregulation, which could have deterred innovation and violated digital asset ownership rights.

Industry leaders, including MicroStrategy co-founder Michael Saylor, expressed their approval of the Senate's decision, emphasizing the need to protect the rights of crypto owners. SEC Commissioner Hester Peirce, known as "Crypto Mom" for her positive attitude towards digital assets, criticized the institution's inconsistent approach to regulating custodial services for digital assets.

The Senate's decision demonstrates a growing consensus among US lawmakers to approach cryptocurrency regulation with a balanced and informed perspective. This unity is crucial as the industry seeks to positively influence future legislation, including the eagerly anticipated stablecoin bill. Ripple's CLO highlighted the importance of bipartisan support in legislative efforts affecting the crypto sector, paving the way for a more measured and mainstream acceptance of cryptocurrencies.