In a rapidly evolving bitcoin adoption, there are few regulatory shifts accompanied by the recent withdrawal of SAB 121. According to famous bitcoin advocates and investors Preston Pish, this development is a moment to a branch point that has a wider range of meanings than the concept of strategic bitcoin reserves. is.
My thoughts on the two biggest things that occurred using bitcoin last week.
Request for redemption to SAB121 and SEC pic.twitter.com/xyhdincovh
-PRESTON PYSH (@prestonpysh) January 27, 2025
Who is Preston Pish?
Preston Pysh is a general partner The capital of the death of the egoBitcoin -centered investment company. Pysh, known for finance, macroeconomics, and bitcoin expertise, Investor pod character network。 Pysh, who deeply understands the possibility of traditional financial systems and bitcoin, is a major voice in the bitcoin community.
What is SAB 121?
SAB 121 (Staff Accounting Bulletin 121) was introduced during the Gary Gensler SEC, which imposed a major restriction on financial institutions trying to cope with bitcoin. Under the guidelines, banks needed to classify bitcoin custody rights as a responsibility for balance sheets. For each dollar they hold, they needed to offset them with equal amounts of capital.
result? Institutional bitcoin custody rights were banned economically. Banks have chosen to provide Bitcoin -related services, paying attention to capital -intensive requirements.
However, the game is changed by the withdrawal of SAB 121. Bitcoin's custody right is currently treated as an asset, not responsibility, dramatically reducing the barriers of major banks such as JPMORGAN, entering the Bitcoin ecosystem. As PYSH points out, “All major bank organizations want to take on this. Loans may have all kinds of things that can pop out.”
Related: Why hundreds of companies buy bitcoin in 2025
New era for institutional bitcoin custody rights
Preston Pysh emphasizes that the change in this regulation may establish bitcoin as the basis of global financial infrastructure. The meaning is profound:
- Wide -range institutional adoption: Banks can now detain bitcoin without facing the troublesome balance sheet requirements. This opens the path to many other financial products tied to loan products, derivatives, and bitcoin.
- Enhanced legitimacy: The willingness to detain the main banks shows the growing recognition of Bitcoin as a global reconciliation layer, further solidifying the status of financial systems.
- Durable framework: Unlike a strategic bitcoin protective area, which may be subject to political whims and management changes, the withdrawal of SAB 121 creates a structural change. “In my humble opinion, Pish explains the long -term effects, explaining and emphasizing its long -term effects, explaining.
Reasons for lack of strategic bitcoin reserve
The idea of the strategic bitcoin reserve, which accumulates bitcoin as part of the national protection area, captured the imagination of the bitcoin community, but Pish lacks the effect of SAB 121. It suggests. The reserve is subject to the priority of management in power. The Probit Coin Government may accumulate reserves only for subsequent governments to reverses the course.
In contrast, institutional adoption driven by the withdrawal of SAB 121 creates a systemic basis. Large -scale integration by private banks and financial institutions is difficult to rewind and is more likely to last in the entire political cycle.
Create risk
Pysh acknowledges concerns about the intensity of bitcoin custody in large -scale institutions. The impact of sovereignty on detention banks may question the decentralization and misuse of bitcoin. However, he also pointed out the mechanism of Blackrock's Redimptions application in Bitcoin ETF as a offset with such risks. “If this actual repayment is awarded by SEC, it really wants it, and I think it will be,” Pysh explains, “That's the playback of the Casodian. He will really offset concerns. “
Related: NASDAQ proposes the RED of Bitcoin ETF in Blackrock
Conclusion
The withdrawal of SAB 121 indicates a monumental change in bitcoin journey to the mainstream adoption. By removing the barrier of the industrial custody rights, we will open a way to integrate bitcoin into global financial systems in a more permanent way than government -led initiative, such as strategic bitcoin reserve. 。 As Preston Pish, the General partner of the Ego Death Capital, this development has established bitcoin as a global settlement, and opens a door to many financial innovation.
The Bitcoin Community must be wary of the risks related to system detention, but does not deny the bullish meaning of the regulatory authorities. The next era of the adoption of bitcoin has begun, and the withdrawal of SAB 121 has led accusations.
