This New Rule Can Change How You Make Money with Crypto

Big News for Crypto Fans!

Do you ever think about how a big decision can shake up the world of crypto? Well, something just happened in the U.S. government that could make a big difference! Here’s why everyone who's into crypto should care.

This article will explain what this big decision means and how it can help you grow your crypto money.

1. US House passes measure overturning controversial SEC accounting bulletin

Recently, the U.S. government decided to reject a rule from the Securities and Exchange Commission (SEC) about how banks should handle cryptocurrencies. This rule (SAB 121) made banks show cryptocurrencies they hold for people as a kind of debt, which made things look worse for the banks than they really were. This was a big deal and not liked by many.

By rejecting this rule, banks will no longer need to show cryptocurrencies they hold for customers as a debt.

2. What This Big Decision Means for You

If banks are no longer required to treat cryptocurrencies as liabilities, we might see more banks offering crypto services, which would make investing in crypto through traditional banks safer and more common. This change could significantly improve investor confidence and market stability.

For example, when similar regulatory changes were made in Japan in 2017, allowing banks to handle cryptocurrencies more freely, there was a notable increase in retail and institutional investment in the sector. Within a year, Japan saw a nearly 50% increase in cryptocurrency trading volumes.

Moreover, a report from the Bank for International Settlements noted that regulatory clarity and the introduction of custodial services by traditional banks are directly correlated with market maturity and reduced price volatility in cryptocurrencies. This suggests that if U.S. banks follow suit, we could see a more stable and growing crypto market.

To put it simply…

Imagine you run a car rental service. Previously, regulations required you to count every car as a debt, which made your business look financially unhealthy. If these regulations were removed, your business could operate more freely and grow. For example, your business will have less debts and qualify for business loan more easily, or secure a business loan at lower interest rate. These will make growing your business much easier!

Similarly, banks would have the flexibility to enhance their services around cryptocurrencies without the burden of skewed financial statements. When there are more crypto products and services offered by the banks, plus improved investor confidence and market stability, your crypto investment portfolio will grow as well.

Why Did This Happen?

1. Different Opinions: People from both major political parties had different opinions about this rule. This isn't new; similar disagreements happened in the early 2000s when they were making rules for internet companies. Those discussions helped the tech industry grow.

2. Pressure from Businesses: People in the finance and crypto industries have been very outspoken about how this rule, SAB 121, limits what they can do. A report from the Crypto Council for Innovation said that these strict rules could make the U.S. less competitive globally. They believe that softer rules would help spark more creativity and investment.

3. Global Standards: Critics say that this rule doesn't match up with what other countries are doing. For example, places like Singapore and Switzerland have friendlier rules for crypto, which has helped them become centers for crypto innovation and investment. This shows that the type of rules a country has can either attract or push away investment.

3. Sponsor and Resources

You can now gather all the crypto news update around the world in a summary, easily digested in 5 minutes. Check out this personal resources I use.

4. Conclusion: Why This Matters for Your Crypto Wallet

This is a big moment that could change how well your crypto investments do. When the U.S. government decided to stop following the SEC's tough crypto rule, it was a big step towards making cryptocurrencies like Bitcoin, Ethereum, and Solana a normal part of finance. This could make the crypto market more stable and could make these digital assets more valuable.

Here’s what you can do to make the most of this chance:

• Stay Updated: Keeping up with the latest news is crucial, especially in the fast-changing world of crypto. Start by subscribing to the Crypto Profit 101 newsletter to receive the newest information and insights directly. This way, you won't miss out on important news that could affect your investments.

• Review Your Investments: Now's a great time to review your investments. Spreading your investments across different asset classes can reduce risks and open up new chances. Think about including more types of cryptocurrencies that could grow from more interest by big institutions and clearer rules.

• Improve Your Plan: As banks might start offering better crypto services, new ways to invest will come up. Explore these new options for safer ways to keep your crypto and think about adjusting your investments to use these new services. This could protect your money and also help it grow as the crypto market gets bigger.

Final Thought: Every big change brings new chances, especially in investing. Are you ready to take charge and make the most of what’s coming in the world of crypto? Start now and use these new opportunities to your advantage.