American banks are in queue to get regulatory approval to buy Bitcoin

Table of Contents

• Bitcoin price 

A group of US-based banks sent a letter to the US Securities regulatory body to get proper regulatory guidance to buy Bitcoin.

On 10 Jan 2024, the United States Securities and Exchange Commission (SEC) approved 11 Bitcoin spot ETF applications. All these Bitcoin financial products are playing a vital role in helping institutions & individuals to invest in Bitcoin directly. 

Just a few days ago, some banks collaboratively sent a letter to the SEC body to get friendlier guidance about holding digital assets for their customers. 

In short, US banks seek regulatory authority to provide Bitcoin saving accounts to customers. This is very big news for the whole crypto sector. 

Under the existing guidance, these banks are allowed to hold digital assets but that is highly expensive for them. To bring some significant changes, banks joined Democrats and Republicans in Congress who are already pushing for a revision of the guidelines.

For now, only those banks can hold digital assets which can allocate assets of the same value as a hedge so that customers are protected against losses. This is the only way they can remain in compliance with their capital requirements.

Some experts claimed that the SEC body cannot easily revise the standing guidance of holding digital assets for banks because it will involve multiple risks and already many financial experts are against Crypto & believe crypto companies were responsible for the bankruptcy of multiple US banks in early 2023. In short the SEC body will try to maintain a better level of gap between Bitcoin & Banks.

Some media reports speculated that if the SEC will ignore the Bank’s requests on this matter then there are chances that Banks may set up their crypto-focused subsidiaries or jump on Bitcoin spot ETF vehicle, to remain in the competition of Bitcoin adoption. 

Bitcoin price 

The current trade price of Bitcoin is $52,312 & this trade price has been 40% higher over the last 3 months.

The city of Bitcoin traders is fully focused on the Bitcoin market sentiments because Bitcoin is ready to go through multiple ups & downs in the next 3 months.

Read also: World famous financial guru says Bitcoin will hit $100k in June