Bank Crypto Rules Hinge on Administration, Leaving Bitcoin Price Exposed
US bank regulators have made drastic changes to their stance on Bitcoin and other cryptocurrencies with every new president since 2017, leaving the $85,975 price of Bitcoin vulnerable to the next administration's regulatory reversal.
The current rules, which allow banks to hold crypto for customers, are dependent on agency actions and can be easily undone by a future regulator. This trend of flip-flopping on bank crypto rules has continued with each new president, with the Biden administration mandating that banks obtain their supervisor's approval before engaging in any crypto activities.
In contrast, a law would offer greater stability for Bitcoin, as it would require majorities in both houses of Congress and the president's signature to be enacted, making it more difficult to reverse.
The SEC's October 2026 custody proposal, despite Wall Street optimism, remains a regulation and not a law, meaning a future SEC could retract it immediately.