The elevation of Bitcoin's legal status
First of all, the passage of this bill marks the official recognition of Bitcoin's status within the U.S. financial system. Defining Bitcoin as a 'store of value' asset makes it similar to traditional safe-haven assets like gold. This not only enhances Bitcoin's legitimacy but also paves the way for its application in financial markets.
Increased participation of the banking sector
With a clear legal framework, banks can now legally include Bitcoin in their balance sheets. This means banks can hold Bitcoin as a reserve asset and may even launch financial products related to Bitcoin. This will undoubtedly increase the liquidity and market depth of Bitcoin.
Increased confidence of institutional investors
For institutional investors, the clarity of regulation is a key factor for entering the market. Da Hongfei pointed out that this bill provides the necessary regulatory framework for institutional investors. This will attract more institutional funds into the Bitcoin market, further driving its price and market value growth.
The integration of Bitcoin with traditional finance
In summary, the passage of this bill indeed marks the further integration of Bitcoin with the traditional financial system. From the elevation of its legal status to an increase in participation from banks and institutional investors, Bitcoin is gradually moving from the margins to the mainstream. This not only aids in the development of Bitcoin itself but will also have a profound impact on the entire cryptocurrency market.