Trump Repeals SEC Crypto Rule, Opening Doors for U.S. Banks
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What Was the Rule?
SAB 121 required banks to classify crypto assets held on behalf of customers as liabilities. This created regulatory hurdles that discouraged many financial institutions from entering the digital asset space.
The rule’s repeal follows efforts from both the House and Senate, which passed a bill last year to overturn it. Although former President Biden vetoed the legislation, Trump’s administration swiftly reversed the decision, signaling a more crypto-friendly stance.
What This Means for U.S. Banks
With this regulatory barrier removed, U.S. banks can now directly engage in cryptocurrency custody services. Bank of America CEO Brian Moynihan has already shown interest, stating that if clear guidelines are in place, banks are ready to scale crypto transactions.
A Step Toward Mainstream Crypto Adoption?
Although not a core campaign promise, this move is a major win for digital asset advocates. By removing restrictions, banks can now integrate crypto into their financial services, potentially boosting mainstream adoption.
With Wall Street showing growing interest in digital assets, this repeal could be a turning point for the U.S. crypto market.