SEC Rule Change May Boost Bitcoin Lending: Banks Eyeing Crypto

The U.S. SEC's rescission of SAB 121 is expected to open doors for major banks to explore Bitcoin-backed lending. This accounting rule previously discouraged financial institutions from holding crypto assets. Mauricio Di Bartolomeo, co-founder of Ledn, suggests this change could lead to increased competition and potentially lower interest rates on crypto loans, making them more accessible. Ledn, a crypto lending platform, currently offers fully collateralized loans. With traditional financial institutions potentially entering the crypto lending market, consumers could benefit from more competitive rates and increased access to financing, especially in regions where efficient financial services are limited.