This article discusses the recent repeal of the SAB 121 ruling by the Securities and Exchange Commission, which required custodians to recognize all digital assets as liabilities on their balance sheets. This repeal allows regulated banks to hold clients’ digital assets in custody, opening up opportunities for institutional investors in traditional finance to enter the cryptocurrency markets.
The article also mentions projections that the amount of crypto assets in custody is expected to reach $16 trillion by 2030, with 10% of the world’s GDP expected to be tokenized by the same year. This highlights the need for secure, compliant, and flexible storage options for companies holding crypto assets.
Experts like Danny Marques at EY and Morgan Krupetsky from AvaLabs welcome the regulatory changes, noting that banks can now hold crypto on their balance sheets without penalties, enabling them to offer a wider range of crypto products and services. However, Preston Pysh from The Investor’s Podcast Network warns about the potential risks of rehypothecation in the crypto space, advocating for legislation to ban this practice in institutions to prevent market crises.
Overall, the article emphasizes the evolving regulatory landscape surrounding crypto custody and the implications for both investors and the financial industry as a whole.
— The Kobeissi Letter (@KobeissiLetter) January 23, 2025
The global financial landscape is undergoing a significant transformation with the emergence of cryptocurrencies and blockchain technology. Sergey Nazarov, the co-founder of Chainlink, a company that is at the forefront of this revolution, recently made a bold statement: “Welcome to the new global financial system.” This statement came in response to the crypto executive order that established the President’s Working Group on Digital Asset Markets, signaling a shift in focus towards cryptocurrencies, blockchains, and related technologies in the United States.
Chainlink, under Nazarov’s leadership, has been instrumental in providing technology that brings the world onchain, paving the way for a more interconnected and secure financial ecosystem. With the increasing adoption of digital assets and blockchain solutions, the need for a comprehensive regulatory framework has become more pressing than ever.
Nazarov’s vision for a new global financial system is one that is decentralized, transparent, and accessible to all. By leveraging blockchain technology, Chainlink is bridging the gap between traditional financial systems and the emerging digital economy, creating new opportunities for innovation and growth.
As the world embraces this paradigm shift towards digital assets, it is essential for governments and regulatory bodies to collaborate with industry leaders like Chainlink to ensure a smooth transition and foster innovation in the financial sector. The establishment of the President’s Working Group on Digital Asset Markets is a step in the right direction, signaling a commitment to embracing the potential of cryptocurrencies and blockchain technology for the benefit of all.
In conclusion, Sergey Nazarov’s words serve as a reminder of the transformative power of blockchain technology and the endless possibilities it holds for the future of finance. With Chainlink leading the way, we are truly witnessing the dawn of a new era in the global financial system.
