One of the most significant factors for the crypto industry lies not in market dynamics, but in the political arena.

Trump’s pro-crypto rhetoric certainly grabbed headlines, but the real catalyst for banks and other financial intermediaries is likely a Republican sweep in Congress, given that most of his pledges would require legislative approval. With strong Republican backing and bipartisan support also showing momentum, crypto-friendly legalisation would be far more likely to pass.

Two developments are central to this shift: dismantling the SEC’s SAB 121 (which has kept much of the financial sector sidelined) and the Bitcoin Act 2024 (which proposes a national bitcoin stockpile).

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Revocation of SAB 121

SAB 121 is a contentious accounting bulletin that has created a compliance burden, discouraging banks from offering services like crypto custody — despite the rising demand from customers (and likely from the banks themselves).

Dismantling SAB 121 would remove a

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Author: Lucas Schweiger