President-elect Trump is set to shake up the financial industry with a new executive order that will allow banks and financial institutions to hold Bitcoin (BTC) and other crypto assets on behalf of their clients. This move comes as a reversal of a regulatory guideline that has limited how financial institutions can handle digital assets.
The Washington Post reports that President-elect Trump is expected to issue executive orders on his first day in office that will address issues such as “de-banking” and the repeal of a controversial crypto accounting policy. This policy currently requires banks to count the digital assets they hold for customers as liabilities on their own balance sheets.
The upcoming executive order aims to overturn SAB 121, an SEC guideline that forces certain financial entities to treat the crypto assets they hold for clients as liabilities. This guideline has been a roadblock for financial institutions looking to venture into the digital asset space.
Crypto advocates argue that SAB 121 hinders the ability of financial institutions to fully embrace digital assets. A bill that sought to eliminate this guideline recently made its way through both the House and the Senate, but President Biden ultimately vetoed it.
As the financial industry eagerly anticipates these changes, it is clear that the landscape of digital assets is evolving rapidly. With President-elect Trump’s executive order expected to open up new opportunities for banks and financial institutions, the future of crypto custody and investment looks promising.
Stay updated with the latest developments in the crypto world by subscribing to our email alerts and following us on Twitter, Facebook, and Telegram. Don’t miss out on the latest price action and news updates from The Daily Hodl. Surf The Daily Hodl Mix for a curated selection of crypto news and insights.
Image Source: Shutterstock/turtix
In conclusion, President-elect Trump’s executive order is poised to revolutionize how banks and financial institutions handle Bitcoin and other crypto assets. By reversing outdated regulatory guidelines, this move is set to pave the way for greater adoption and integration of digital assets in the financial sector. Stay tuned for more updates on this groundbreaking development.