BANKS SURRENDER: THE 3-PART BITCOIN PEACE TREATY
For ten years, TradFi’s strategy against Bitcoin was simple: a war of attrition.
Close the accounts of those associated with Bitcoin and, through alienation, attempt to starve the beast.
But this week, rather than continue the siege, banks and regulators offered a peace treaty in three parts.
And as a result, we just witnessed the fastest convergence between Bitcoin and the US banking system in history.
Let’s assess the new state of play.
First, the banks.
PNC Bank, a top-10 institution with over half a trillion dollars in assets, crossed the Rubicon.
Rather than just selling you an ETF wrapper, they are launching direct, spot Bitcoin trading inside your regular bank account.
Right next to your checking account, right next to your mortgage... there is Bitcoin.
PNC is the first major US bank to offer the real thing.
They realized what we’ve known for years: if they don't offer it, you’ll go somewhere that does.
Next, the Regulators.
The CFTC just admitted that the US Dollar is too slow for the modern world.
They launched a pilot program to accept Bitcoin as collateral in derivatives markets.
Why? Because Wall Street closes on Friday at 5 PM, but in a global market, risk happens 24/7.
When a margin call hits in the middle of the night, your Treasury bonds are useless because the bank is closed.
But Bitcoin? Bitcoin is awake.
This 16-year-old, nearly $2 trillion asset is forcing regulators to accept that their own settlement rails are obsolete.
And finally, the OCC signing off on the "Riskless Principal" approval.
The regulator just admitted that buying and selling Bitcoin for clients is a 'logical outgrowth' of standard banking.
They ruled it is the 'economic equivalent' of acting as an agent for any other asset.
Meaning? The bank is just an intermediary.
They don't hold the coins in inventory; they execute the trade, just as they would for any other financial asset.
Banks can now officially act as brokers for your coins.
With this move, the government is paving the road over the grave of Joe Biden’s Operation Chokepoint 2.0.
The passing of the GENIUS Act is forcing the incumbents to adopt it or die.
So, what are we really looking at?
We are watching the 9-to-5 banking system try to plug itself into the 24/7 Bitcoin network.
And the financial rails of the last 50 years are being forced to catch up.
We went from an industry under siege, to a Trojan Horse outside their gates, to an asset inside their vaults and a network they need to keep up in the 21st century.
For ten years, TradFi’s strategy against Bitcoin was simple: a war of attrition.
Close the accounts of those associated with Bitcoin and, through alienation, attempt to starve the beast.
But this week, rather than continue the siege, banks and regulators offered a peace treaty in three parts.
And as a result, we just witnessed the fastest convergence between Bitcoin and the US banking system in history.
Let’s assess the new state of play.
First, the banks.
PNC Bank, a top-10 institution with over half a trillion dollars in assets, crossed the Rubicon.
Rather than just selling you an ETF wrapper, they are launching direct, spot Bitcoin trading inside your regular bank account.
Right next to your checking account, right next to your mortgage... there is Bitcoin.
PNC is the first major US bank to offer the real thing.
They realized what we’ve known for years: if they don't offer it, you’ll go somewhere that does.
Next, the Regulators.
The CFTC just admitted that the US Dollar is too slow for the modern world.
They launched a pilot program to accept Bitcoin as collateral in derivatives markets.
Why? Because Wall Street closes on Friday at 5 PM, but in a global market, risk happens 24/7.
When a margin call hits in the middle of the night, your Treasury bonds are useless because the bank is closed.
But Bitcoin? Bitcoin is awake.
This 16-year-old, nearly $2 trillion asset is forcing regulators to accept that their own settlement rails are obsolete.
And finally, the OCC signing off on the "Riskless Principal" approval.
The regulator just admitted that buying and selling Bitcoin for clients is a 'logical outgrowth' of standard banking.
They ruled it is the 'economic equivalent' of acting as an agent for any other asset.
Meaning? The bank is just an intermediary.
They don't hold the coins in inventory; they execute the trade, just as they would for any other financial asset.
Banks can now officially act as brokers for your coins.
With this move, the government is paving the road over the grave of Joe Biden’s Operation Chokepoint 2.0.
The passing of the GENIUS Act is forcing the incumbents to adopt it or die.
So, what are we really looking at?
We are watching the 9-to-5 banking system try to plug itself into the 24/7 Bitcoin network.
And the financial rails of the last 50 years are being forced to catch up.
We went from an industry under siege, to a Trojan Horse outside their gates, to an asset inside their vaults and a network they need to keep up in the 21st century.