Banks Get the Green Light for Crypto Custody?
Incoming President Trump is reportedly planning an executive order that will let banks hold Bitcoin and other cryptocurrencies for their customers. This would overturn a current rule that makes things difficult for banks dealing with digital assets.
Reversing the Rules
The order aims to scrap a guideline known as SAB 121. This rule forces banks to list crypto they hold for clients as liabilities on their balance sheets – a major hurdle for banks wanting to get involved in the crypto space. Crypto supporters argue this rule has stifled bank participation in the crypto market. While Congress passed a bill to get rid of SAB 121, President Biden vetoed it.
What This Means
Trump’s executive order, if it happens, could significantly change the game for banks and the crypto industry. It could open the door for much wider adoption of crypto by mainstream financial institutions.
Disclaimer: This information is for general knowledge only and is not financial advice. Investing in crypto is risky, so always do your own research before making any decisions.
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