Michael Saylor, the executive chairman at business intelligence firm MicroStrategy, says that banks are now allowed to custody Bitcoin.
This comes after the controversial SAB 121 rule has been rescinded in the SEC's newly published accounting bulletin.
The highly controversial rule required the companies engaging in crypto custody to include digital assets as a liability on their balance sheet.
This would force such entities to raise substantial funds in order to maintain sufficient leverage ratios.
Cryptocurrency proponents have long argued that the rule would make it economically untenable to safeguard crypto for major players.
"It effectively barred banks from entering the market," Teddy Fusaro, president at Bitwise Invest, said on social media.
Last year, some lawmakers tried to repeal the anti-crypto rule without success. However, SAB 121 was easily undone by the new administration.
"For years, federal agencies tried to shut crypto out of the financial system through efforts like Chokepoint 2.0. These efforts were never authorized by Congress or implemented by lawful rulemaking, so they can be undone easily," Jake Chervinsky, CLO at Variant, said in a recent statement.
According to Anthony Scaramucci of SkyBridge Capital, bank executives are already excited about regulatory clarity based on the conversations that he has heard in Davos, Switzerland, during the World Economic Forum. He believes that the market is yet to price in these developments.
"The market is not pricing this in. In Davos this week, bank executives were attending crypto events and expressing excitement about regulatory clarity," he said.
