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The U.S. Senate has voted down a policy proposal from the U.S. Securities and Exchange Commission (SEC) that would have dramatically changed %Cryptocurrency accounting procedures in America.

The Senate voted 60-38 against the SEC proposal. A dozen Democrats voted alongside a majority of Republicans.

However, the SEC proposal may not be dead as U.S. President Joe Biden has vowed to veto the resolution.

Biden has said that he wants to “…protect investors in crypto-asset markets and safeguard the broader financial system.”

The policy proposed by the Wall Street regulator would have required that a company keeping a customer’s crypto assets should record them on its own balance sheet, an accounting procedure that would have major capital implications for banks that work with crypto clients.

The lower House of Representatives also took issue with the SEC’s proposed accounting change related to crypto, with about 21 Democrats joining with Republicans to vote against the rule change.

Apart from a crypto tax provision that was included in an infrastructure law, this is the first time that Congress has moved on a crypto issue, and lawmakers voted to help the sector.

It remains to be seen if President Biden will make good on his veto threat. The SEC has not commented publicly on the vote against its policy proposal.

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