President-elect Trump will issue an executive order effectively allowing banks and financial institutions to hold Bitcoin (BTC) and crypto assets on behalf of their clients, according to a new report.

The incoming order will reverse a regulatory guideline that has shaped how financial institutions account for and custody digital assets, reports the Washington Post.

“…Trump is expected to issue executive orders on the first day of his presidency that may address issues including “de-banking” and the repeal of a controversial crypto accounting policy requiring banks holding digital assets to count them as liabilities on the bank’s own balance sheet, according to a person involved with the conversations.”

The expected executive order is designed to reverse SAB 121, an SEC guideline that requires certain financial entities to list the crypto assets they hold for customers as liabilities on their balance sheets.

Crypto proponents say the guideline effectively blocks financial institutions’ ability to simply hold digital assets on behalf of their customers.

A bill aiming to eliminate SAB 121 recently passed both the House and the Senate, but President Biden vetoed the bill.

 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/turtix

The post US Banks Can Hold Bitcoin and Crypto Under Incoming Trump Executive Order: Report appeared first on The Daily Hodl.

President-elect Trump will issue an executive order effectively allowing banks and financial institutions to hold Bitcoin (BTC) and crypto assets on behalf of their clients, according to a new report.

The incoming order will reverse a regulatory guideline that has shaped how financial institutions account for and custody digital assets, reports the Washington Post.

“…Trump is expected to issue executive orders on the first day of his presidency that may address issues including “de-banking” and the repeal of a controversial crypto accounting policy requiring banks holding digital assets to count them as liabilities on the bank’s own balance sheet, according to a person involved with the conversations.”

The expected executive order is designed to reverse SAB 121, an SEC guideline that requires certain financial entities to list the crypto assets they hold for customers as liabilities on their balance sheets.

Crypto proponents say the guideline effectively blocks financial institutions’ ability to simply hold digital assets on behalf of their customers.

A bill aiming to eliminate SAB 121 recently passed both the House and the Senate, but President Biden vetoed the bill.

 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/turtix

The post US Banks Can Hold Bitcoin and Crypto Under Incoming Trump Executive Order: Report appeared first on The Daily Hodl.