I’ll be surprised if we ever see small-medium sized banks hold bitcoin on their balance sheet.
Not because of regulation specifically saying they’re allowed to hold it, but capital regulation surrounding bank asset size. Banks are categorized between Category 1 (GSIB) - Category 4 ($100b).
Each jump to a higher category requires a significant overhaul in investment, reporting, testing, planning, hiring, compliance, etc for the bank. And most of all, it’s takes time. Roughly 1-3 years to prepare for the “go-live” to be exact.
Bitcoin’s ngu would accelerate this timeline significantly for most banks if they held a decent bag, which is frankly not feasible for a majority of them today. Could be why we’re starting to see talks of loosening regulation that was made post 08-09.
marksea / Mark Sea
npub1e8…e6dq0
2025-05-21 16:59:31
Author Public Key
npub1e8wj749dylsew4pkm9ufz97hvrtk63wfy0cfq2c9gv4973q25hds8e6dq0Published at
2025-05-21 16:59:31Event JSON
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