President-elect Donald Trump is expected to repeal the SAB 121 rule, which could broaden traditional banks' involvement in the crypto sector. This act may significantly impact the cryptocurrency market and the potential establishment of a U.S. Strategic Bitcoin Reserve.
Repealing SAB 121
Reports suggest that Donald Trump intends to make the repeal of the SAB 121 rule a priority on his agenda. Currently, this rule prohibits most banks from participating in the crypto sector due to strict 1:1 accounting requirements. Despite a Congress majority voting to overturn this proposal, President Joe Biden vetoed it, stating he would not 'jeopardize consumers and investors.'
Strategic Bitcoin Reserve
Trump's transition team aligns with their campaign promises to foster a thriving crypto environment in the U.S. They plan to establish a Strategic Bitcoin Reserve (SBR), potentially included in the President's initial executive orders. The expectations for a U.S. SBR have increased, correlating with Bitcoin's price rise.
Crypto Market Amid Expectations
Over the past two weeks, the odds of a U.S. SBR being established within the first 100 days of Trump's administration have risen from 26% to 36%. This surge coincided with Bitcoin's recovery from $91k to $102k. Some market experts believe a U.S. SBR could spark FOMO among other countries and potentially raise Bitcoin's value.
The repeal of SAB 121 and the potential establishment of a Strategic Bitcoin Reserve could be significant steps in strengthening cryptocurrencies' status in the global market. We will watch how these developments influence Bitcoin's value.
