The SEC’s recent decision to scrap a strict rule on how banks handle crypto is a bigger deal for Bitcoin than you might think. Experts believe this change could send Bitcoin’s price soaring.
What Happened?
The SEC got rid of SAB 121, a rule that made it super hard and expensive for banks to deal with crypto. This was replaced by SAB 122, which is much more lenient. SAB 121 basically forced banks to treat customer crypto as a liability on their balance sheets – a major headache.
Why is this a Big Deal for Bitcoin?
This change removes a major roadblock for banks wanting to offer crypto services. Before, the rules were so tough that most banks stayed away from offering anything related to Bitcoin or other cryptocurrencies. Now, that barrier is gone.
Several prominent figures in the crypto space agree this is huge. Andrew Parish called it a bigger catalyst for Bitcoin than another anticipated development (the US Bitcoin Reserve). Fred Krueger thinks it’ll encourage banks to start buying Bitcoin. Vijay Boyapati even described it as a massive shift, saying this is far more positive for Bitcoin than previous administrations. Michael Saylor, a well-known Bitcoin bull, also pointed out the significance, noting that this removes a key obstacle to Bitcoin reaching his predicted price target.
What Does This Mean for the Future?
Experts believe this will lead to more banks offering crypto services, like custody solutions. This means more institutional investors will likely get involved with Bitcoin, increasing demand and potentially driving up the price. Bank of America’s CEO even hinted at this possibility, saying that if regulations become clearer, banks will jump into the crypto space.
Essentially, the easier it is for banks to handle Bitcoin, the more likely they are to handle it. This could be a major boost for Bitcoin’s adoption and price. At the time of writing, Bitcoin was trading at $105,466.
