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Replying to Avatar Dr. Bitcoin, MD

It sounds to me like SAB121 wanted banks to never touch bitcoin, and it effectively forbade banks from just taking custody of it by assigning a value of $0 to the bitcoin on the asset side of their balance sheet but requiring mark to market accounting on the liability side…so depositing $200M of bitcoin would require bank to add $200M of non-bitcoin assets to their balance sheet to cover the deposit.

That’s lame as hell.

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samuel 11mo ago

Worse if Bitcoin increased in value they would need to acquire more assets to cover the risk.

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