Donald Trump’s crypto insurance policies have ignited a way of optimism inside the trade, hinting at a brand new period of progress and innovation. The US Securities and Exchange Commission’s resolution to rescind SAB 121 has additional fueled confidence. Experts hope that the abolition of SAB 121 will pave the way in which for the institution of Bitcoin banks.
Notably, Stacy Herbert, Director of El Salvador’s Bitcoin Office, has expressed hopefulness about banks holding Bitcoin. Her assertion displays a common pleasure surrounding the combination of Bitcoin and different cryptocurrencies into the US banking trade.
SAB 121 Rescission Greenlights Bitcoin Banking
In a current X post, Stacy Herbert, the Director of Bitcoin Office, El Salvador, commented on the potential acceptance of Bitcoin in monetary establishments. While her optimism is especially pushed by the SEC’s current abolition of SAB 121, Herbert acknowledged, “Bitcoin banks are coming.”
Herbert’s submit got here in response to MicroStrategy founder Michael Saylor’s X thread on the withdrawal of SAB 121. She emphasised the advantages of Bitcoin banks, suggesting that integrating Bitcoin into conventional banking may doubtlessly enhance investments.
SEC Withdraws SAB 121, Releases SAB 122
In an outstanding growth, the US SEC withdrew Staff Accounting Bulletin No. 121 and launched Staff Accounting Bulletin No. 122. While SAB 121 restricted banks’ custody of cryptocurrencies, SAB 122 reverses the rule that pressured entities to log a legal responsibility when defending consumer crypto property.
SEC Commissioner Hester Peirce, who now lead the newly shaped Crypto Task Force, responded to the SAB 121 abolition with an X submit that learn, Bye, bye SAB 121! It’s not been enjoyable.”
Bye, bye SAB 121! It’s not been enjoyable: https://t.co/cIwUc0isUE | Staff Accounting Bulletin No. 122
— Hester Peirce (@HesterPeirce) January 23, 2025
Similarly, Senator Cynthia Lummis expressed her contentment with the SEC’s motion, stating,
SAB 121 was disastrous for the banking trade, and solely stunted American innovation and development of digital property. I’m THRILLED to see it repealed and get the SEC again on monitor to fulfilling its supposed mission.
Trump Government Fights Operation Chokepoint 2.0
Joe Biden’s administration has been accused of stifling the crypto trade by pressuring banks to sever ties with crypto companies, a transfer critics have dubbed “Operation Chokepoint 2.0. Coinbase CEO previously said that the Biden government was trying to “kill” your complete crypto ecosystem. The SEC’s SAB 121 was additionally such a transfer that stifled the crypto economic system.
However, the US lawmakers have recently launched investigations into the matter, analyzing the federal government’s regulatory overreach. While many together with Brian Armstrong, Hayden Adams, and Paul Grewal have overtly raised voices in opposition to Operation Chokepoint 2.0, the US Oversight Committee pledged to deal with the difficulty.
Regulatory Shifts Mark the Future of Bitcoin Banks
Trump’s executive order that focuses on crypto has ushered in a brand new period of crypto markets within the US. Recently, the President signed an govt order to develop a nationwide digital asset stockpile, sparking neighborhood enthusiasm. These coverage shifts, particularly the abolition of the controversial SAB 121, sign the emergence of Bitcoin banks.
In anticipation of the US banking trade’s adoption of crypto, Draper University Founder Tim Draper acknowledged,
Goodbye to SAD SAB 121. We welcome banks to the brand new world of Bitcoin. Banks don’t must fake that the greenback is best anymore.
Moreover, Bank of America CEO Brian Moynihan’s assurance that the US banking trade would embrace cryptocurrencies upon regulatory approval has bolstered hopes for mainstream adoption. Circle CEO Jeremy Allaire additionally stays bullish on the monetary establishments’ endorsement of digital property.
Nynu V Jamal
Nynu V Jamal is a passionate crypto journalist with three years of expertise in blockchain, web3, and fintech spheres. She has established herself as a educated and interesting voice within the cryptocurrency and blockchain house. Her expertise as an Assistant Professor in English Language and Literature has additional added to her quest for crafting informative, well-researched, and accessible content material.
Disclaimer: The introduced content material might embrace the non-public opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any duty in your private monetary loss.
