The US Senate passed a measure to overturn a Securities and Exchange Commission (SEC) bulletin that sets accounting standards for companies that custody cryptocurrency. The measure, which passed with a 60-38 vote, will now go to President Joe Biden's desk, where it is likely to be vetoed. The Senate vote fell short of the two-thirds majority needed to override a presidential veto.

The SEC Staff Accounting Bulletin, known as SAB 121, was published in 2022 and has been controversial in the crypto industry. It requires companies that custody cryptocurrency to record customer holdings as liabilities on their balance sheets. The crypto industry has argued that this could prevent banks from safeguarding digital assets.

The White House has stated that President Biden will veto the measure, citing concerns about financial instability and market uncertainty. Many in the industry have criticized the Biden Administration's efforts to keep SAB 121 in place, with some calling a veto "nonsensical."

The measure was passed under the Congressional Review Act, which allows Congress to review and overturn agency rules. If the measure is vetoed, it will require a two-thirds majority in both the House and Senate to override the veto. This is a steep hill to climb, as a similar measure to overturn a joint employer rule was vetoed by President Biden earlier this month.

Despite the likely veto, the vote shows growing bipartisan support for the crypto industry. Several Democrats, including Senate Majority Leader Chuck Schumer, voted in favor of the measure. The vote also highlights the growing constituency of grassroots and industry supporters of the crypto industry.