Key Points
- President-elect Donald Trump is expected to repeal the SAB 121 accounting rule, opening traditional banks to the crypto sector.
- Market expectations for a Strategic Bitcoin reserve in the United States have increased.
President-elect Donald Trump is reportedly planning to repeal the SAB 121 accounting rule on his first day in office.
This move is seen as a significant win for the crypto-market.
Repealing SAB 121
According to a report, Trump views the de-banking agenda as a high priority.
He is expected to issue executive orders on his first day to address it and repeal the accounting rule that has kept traditional banks out of the crypto sector.
The SAB 121 guideline has imposed a strict 1:1 accounting requirement for banks dealing with crypto and has prevented most banks from participating in the sector.
Despite Congress voting overwhelmingly to overturn the proposal, it was vetoed by President Joe Biden who stated he would not “jeopardize consumers and investors.”
Strategic Bitcoin Reserve
The Trump-Vance transition team’s update aligns with their campaign promises to the sector.
The team has expressed their intent to create an environment where crypto can thrive in the U.S.
In addition to repealing most anti-crypto laws, the team has also pledged to establish a strategic Bitcoin reserve (SBR).
There have been claims that the SBR would be included in the President’s first-day executive orders.
This has led to a rise in market expectations for a U.S SBR.
Over the past two weeks, the odds of a U.S SBR being formed within the first 100 days of the Trump administration have jumped from 26% to 36%.
This surge in odds coincided with Bitcoin’s recovery from $91k to $102k, before the cryptocurrency reversed its gains.
Some market experts believe that a U.S SBR could trigger FOMO among other countries and potentially push Bitcoin’s value higher.
Whether this becomes the next step in Bitcoin’s adoption spree remains to be seen.
