The recent newsletter highlights significant changes in the U.S. cryptocurrency landscape, particularly under the potential presidency of Donald Trump. The Securities and Exchange Commission has overturned a costly rule that made it difficult for banks to handle digital assets, suggesting a more favorable approach to cryptocurrencies. This move allows banks to offer custody services for crypto without heavy penalties. Financial giants like BlackRock are pushing for quicker acceptance of tokenized assets. Industry experts see this shift as crucial for banks to engage with crypto customers effectively. Bitcoin’s value also appears to be rising, reflecting growing investor confidence amid these regulatory changes. Stay informed with the White House Watch newsletter for in-depth analysis on the 2024 elections and its implications.
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On a recent Thursday, the Securities and Exchange Commission (SEC) has made a significant move that benefits banks aiming to expand their cryptocurrency ventures. It has overturned a rule from the Biden administration that made holding digital assets costly for financial institutions.
This decision marks one of the first pro-crypto actions since Donald Trump began his second presidency. The SEC has reversed a guideline known as SAB 121, which previously required banks to categorize digital tokens held for customers as liabilities. This change reflects a new and more favorable approach towards cryptocurrencies under Trump’s administration, reversing the skepticism that characterized the SEC during Biden’s time in office.
As interest in cryptocurrency grows, major financial firms are eager to dive in. Larry Fink, the head of BlackRock, has called for the SEC to swiftly approve the creation of tokens backed by stocks and bonds. On the same day, Trump issued an executive order outlining his priorities toward cryptocurrencies, indicating a more supportive stance toward the digital asset sector.
While Paul Atkins is awaiting Senate confirmation to lead the SEC, the current acting chair, Mark Uyeda, alongside another Republican commissioner, Hester Peirce, are actively promoting a pro-crypto agenda. They have formed a task force and initiated the dismantling of SAB 121, allowing banks to offer custody services for cryptocurrencies without facing excessive penalties.
Rick Wurster, CEO of Charles Schwab, shared insights during an analysts’ call, expressing the expectation that regulations will soon favor offering spot crypto services.
The decision has been warmly received by industry leaders. The American Bankers Association and other lobbyists previously urged Biden to revoke the SEC’s restrictive guidance, emphasizing that the new clarity around custody services is essential for banks wishing to provide crypto offerings.
Following this announcement, Bitcoin prices saw an increase of over 1.5 percent, reaching approximately $105,800, edging closer to its all-time high.
This newly optimistic environment for cryptocurrencies suggests that the Market could be bracing for a significant shift as the 2024 election approaches.
Tags: US election 2024, cryptocurrency, SEC, Donald Trump, banking regulations, Bitcoin.
What does the US securities regulator’s decision mean for Wall Street banks?
The decision allows Wall Street banks to hold cryptocurrencies. This means they can now offer crypto services and products to their clients, making it easier for people to invest in digital currencies.
Why is this change happening now?
The change is happening because the demand for cryptocurrencies is increasing. Regulators want to ensure that banks can provide these services safely and follow the right rules.
How can this affect regular investors?
Regular investors may benefit from more access to cryptocurrencies through their banks. It could also lead to better security and protection for their investments.
Are there any risks involved?
Yes, there are risks. Cryptocurrencies can be very volatile and unpredictable. Investors should do their research and understand these risks before diving in.
What should investors keep in mind?
Investors should stay informed about the regulations and changes in the crypto Market. They should also consider their financial goals and risk tolerance before investing in cryptocurrencies.
