Disruption Banking reported recently that Bank of America may be prepping to embrace Bitcoin and, in fact, crypto pretty soon. This was according to the statement made by BofA CEO Brian Moynihan at the World Economic Forum in Davos. He made it clear that banks aren’t averse to crypto—they’re just waiting for clearer rules. “If the rules come in and make it a real thing that you can actually do business with, you’ll find that the banking system will come in hard on the transactional side of it,” he pointed out.
In plain English, banks want solid ground before they dive in. They’ve been playing it safe for years, sitting on their hands as crypto moved fast and caused disruption. But now that Staff Accounting Bulletin No. 121 (SAB 121) is gone, the playing field might be leveling. This rule forced banks to classify crypto as liabilities, which made it a tough sell internally.
Now, with that out of the way, some wonder if banks will finally take the plunge. Is the rescission of SAB 121 by the U.S. SEC greenlight enough for Moynihan, and the banks in America?
President Donald Trump is adding to the mix with his new executive order on digital finance titled “Strengthening American Leadership in Digital Financial Technology.” It sounds like a big move, but executive orders often grab headlines without much real action. If anything, it’s a signal that Washington is starting to take crypto more seriously.
In his virtual remarks to the World Economic Forum at Davos, 11AM EST, Thursday, 23rd Jan., President Trump announced that he will make the United States the “World Capital of Artificial Intelligence and Crypto.”
Commenting on SEC commissioner Hester Peirce‘s X farewell post on the SAB rule, Senator Cynthia Lummis — presently named the first-ever chair of the Senate Banking Subcommittee on Digital Assets by Senate Banking Committee Chair Tim Scott (R-SC) — said the SAB had done more harm than good to the banking industry, American innovation, and digital assets. And that she was glad it was finally repealed and laid to rest.
On Sen. Lummis’ appointment, Scott said, “Blockchain technology and cryptocurrency have the potential to democratize the financial world – and there’s no better champion for the industry than my friend Cynthia Lummis.
“Since day one, [she] has been a leader on digital assets legislation, and I am proud to have her spearhead the Banking Committee’s efforts through our new Subcommittee on Digital Assets. Working with the Trump administration […] we will advance a commonsense regulatory framework to facilitate innovation here in the United States, not overseas.”
They’re hopeful that this will finally give banks a breather on adopting crypto and crypto payments. But banks tend to move at their own speed—slow and steady.
Even with some regulatory hurdles gone, banks still have a lot to figure out. Crypto custody, compliance, and the fear of risk haven’t disappeared overnight. The scars from collapses like FTX are still fresh, and no bank wants to be the next scapegoat or sacrificial lamb.
Then there’s the competition. Crypto-native companies like Coinbase and Fidelity Digital Assets have been in the trenches for years. They’ve built systems, gained trust, and adapted to the market’s wild swings. Banks might find themselves late to the game, needing to prove they can keep up.
But sitting this one out isn’t an option anymore. More clients are asking about crypto, and the demand is getting harder to ignore. Whether it’s custody services or crypto-backed loans, the pressure is on for banks to act—or risk becoming irrelevant.
This makes us at Disruption Banking wonder, “Has the Crypto Renaissance Really Begun?”
Of course, crypto veteran Michael Saylor of MicroStrategy doesn’t seem to disagree. He thinks this is a turning point. And it’s starting to look that way, but it’s too soon to tell. The next few months will show if banks are ready to start playing hardball or if they’ll keep crying foul.
One thing is clear— more disruptions are in store for both the banking and crypto industries. The only question left is who’s brave enough to make the first big move.
Author: Richardson Chinonyerem
See Also:
Is a Global Bitcoin Arms Race Looming in 2025? | Disruption Banking
Has the Crypto Renaissance Really Begun? | Disruption Banking
Could “Crypto Mom” Hester Peirce Be The Next SEC Chair? | Disruption Banking
