The U.S. Securities and Exchange Commission, led by Acting Chairman Mark Uyeda, has repealed several Biden-era cryptocurrency regulations, notably rescinding SAB 121, signaling a major shift in U.S. crypto regulatory policy.
This regulatory rollback impacts banks by easing restrictions on crypto custody services, encouraging broader institutional participation in the digital asset market and potentially boosting major cryptocurrencies like Bitcoin and Ethereum.
Uyeda’s SEC Rescinds SAB 121, Alters Crypto Custody
The SEC’s recent decision to repeal SAB 121 marks a significant change in U.S. crypto policy. Acting Chairman Mark Uyeda emphasized a more reform-oriented approach, aiming to foster innovation and reduce confusion about legal frameworks.
The repeal of the rule, initially implemented in 2022, allows banks to serve as custodians for digital assets. This action aligns with President Trump’s executive order prohibiting CBDCs, reinforcing a shift towards private sector innovation.
Financial Institutions Applaud Crypto Regulations Rollback
Financial institutions are set to gain from the regulatory change, anticipating increased involvement in crypto markets. Key industry figures like Rob Nichols have praised the move as providing safety and growth opportunities for U.S. consumers. Rob Nichols, President & CEO, American Bankers Association, said, “Since the bulletin was issued in 2022, ABA has advocated extensively with the SEC…to eliminate this misguided policy. Allowing banks to serve as custodians for digital assets ensures that consumers won’t be left only with unsupervised, poorly regulated options to safeguard these assets going forward.”
Historical precedents suggest such regulatory relaxations lead to rising institutional adoption, which boosts liquidity and value for digital assets. Expert projections indicate a positive trend for key players like Bitcoin and Ethereum as institutional confidence grows.
Crypto Market Poised for Growth Post-Policy Shift
Past regulatory reversals, similar to the SAB 121 repeal, have often resulted in increased mainstream acceptance and investment in crypto markets. Senator Ted Cruz’s statement reflects bipartisan support, emphasizing crypto’s significance. Sen. Ted Cruz, U.S. Senator, Texas, noted, “It’s a powerful statement of the importance of crypto. I think crypto was one of the major issues in the last election. We just saw a really strong bipartisan repudiation of that regulation.”
Expert opinions, including those from Kanalcoin, suggest the policy shift indicates a maturing regulatory landscape. This aligns with global trends towards liberalizing crypto regulations for broader economic and financial integration. For further information, see SEC Press Release detailing significant news and updates.
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