U.S. SEC Paves the Way for Wall Street Banks to Hold Crypto

The United States Securities and Exchange Commission (SEC) has made a landmark decision by annulling rule SAB 121, which previously barred Wall Street banks from holding crypto assets like Bitcoin on their balance sheets. This move may pave the way for mainstream adoption of digital assets and open up new investment opportunities.

Wall Street Banks to Custody Crypto

The canceled rule, introduced in 2022, made banks classify crypto assets as liabilities, making it unlawful and risky to offer crypto custody services. By revoking this rule, the SEC is giving the green light for Wall Street banks to dive into the crypto industry. The recent decision aligns with President Donald Trump’s push for a more crypto-friendly environment.

The implications of this decision are far-reaching. Wall Street banks, including Goldman Sachs, Morgan Stanley, and Bank of America, are already expressing interest in expanding their digital asset offerings. Charles Schwab’s CEO Rick Wurster said:

“We do want to have the ability to offer spot crypto, and our expectation is that at some point, the regulations around crypto are going to allow us to do that.”

Industry experts hail the SEC’s decision as a significant shift in the U.S. regulatory system. Commenting on this move, Mark Palmer, an equity research analyst at The Benchmark Company, said:

“Traditional banks will now be able to offer crypto custody services without facing de facto penalties.”

The SEC’s decision could boost the country’s overall economy. By allowing banks to hold crypto, the financial regulator is facilitating the growth of a new asset class. This, in turn, is expected to create new investment opportunities and stimulate economic growth.

American Banks Show Interest in Crypto

The SEC’s latest move is long-awaited. American banks have shown interest in joining the crypto industry by exposing their investors to Bitcoin ETFs. Earlier this week, Bank of America’s CEO, Brian Moynihan, hinted that U.S. banks are optimistic about embracing crypto as a payment option.

Meanwhile, all these are only made possible by the new administration led by Trump. Within a few days in office, he is already working on fulfilling several campaign promises. He has pardoned Ross Ulbricht, who was serving a double-life sentence for his role in creating the Silk Road marketplace.