the financial system as we know it just changed overnight thanks to an obscure three number Rule and Bitcoin is at the center of it all now for years banks have been locked out of Bitcoin because of one controversial SEC rule that's been challenged and vetoed by Biden but in a stunning turn of events the rues been overturned and note this isn't just a policy shift it's the beginning of a complete fundamental change in how Bitcoin fixs into the Global Financial system and no matter what you know about this you're not bullish enough so in this
video I'm going to break down exactly what the SEC just did and why now I'm going to explain why this is a much bigger deal for Bitcoin than most are thinking we're going to look at how this will impact bitcoin's value and adoption and of course what we should be watching and paying attention to as all this unfolds now real quick I'm Mark Moss I've been making Bitcoin and macro educational content for over 7 years with over 100 million views I'm a partner of leading Bitcoin hedge fund called the Bitcoin opportunity fund I'm the chief
Visionary officer at Matador it's a new public Bitcoin company and I help thousands of investors like you navigate these fast moving times and this is the exact information that we're looking at to plan our next moves and so should you so let's go all right so what is this obscure three number rule we're talking about well this is sab1 121 huh well what does that mean well Sab stat accounting bulletin and basically this was issued by the SEC the Securities Exchange Commission back in 2022 and it established the crypto Accounting Standards now the important thing
to know about this is it was not a law it was not a regulation it wasn't pass through the regular means in the United States of going through Congress this was by the SEC themselves and so this was actually just a bulletin it was like a note this is like sort of what we think and basically what it did is it set this requirement this bulletin of how Banks should think about accounting standards for Bitcoin and cryptocurrency and basically what it did is it required the banks to hold Bitcoin and cryptocurrencies on their books as
a liability and that means for a liability they need to have a matching asset as well and that created a problem for them now the important thing to understand is that again this was not a law was not a regulation it was a bulletin now why is that well that is because you have to understand this piece it's because the Biden Administration including Elizabeth Warren including Gary guinsler as the head of the SEC were very very anti- crypto as a matter of fact Elizabeth Warren ran on a platform called an anti- crypto Army literally figuratively
now I didn't understand and I actually asked chbt when this came out uh when has a United States America politician ever ran on a platform to take away freedoms which would be weird in the land of the free and CHT said never but Elizabeth Warren did she ran a platform to take away your rights to hold assets as you see fit which is pretty interesting so you can see Elizabeth Warren Gary guinsler and Biden were very anti- cryptocurrency very anti- freedom and so what happened is instead of going through the regular means of going and
changing the laws they decided to go around and do something Sly in a roundabout way and so what they did is the SEC completely bypassed Congress so instead of going through the regular law channels of making a law what they did is they issued this bulletin and this bulletin said hey this is the risk that we see this is what we think you should do and you know it's not a law but if you don't do this uh be prepared for us to come in and find you and shut you down and all types of
things and so it completely bypassed Congress in that way and it fast-tracked strong armed its implementation some concerns of the sec's actions were that it had lack of due process so because they circumvented Congress the STC ignored the proper process it had regulatory overreach so it created new laws through a threat a threat of enforcement so this was how the Biden regime did things they threatened people if they don't do what they want then they're going to be Rak through the coal now in that um bulletin they showed sort of the technological risk the legal
risk the regulatory risk that were posed and basically what they said here is this was required required required uh required so they're telling you if you don't do this be prepared we're coming after you so guess what happened well the banks didn't get involved they wanted to and the banks started missing out the banks saw everybody making all this money in Bitcoin and cryptocurrencies of course they wanted in but they couldn't because they were fearful of what the SEC would do and so then what did the banks do well if we can't make money then
we're not going to let anybody participate and so you saw things where the banks were potentially not letting you transfer money from the bank to exchange like coinbase for example like my own bank one of the banks I use won't let me transfer money so for example but the problem is the banks were losing customers they could see people pulling money out and sending it to cryptocurrency exchanges and Banks were very sticky they don't want to lose those customers because they'll lose out a lot of potential income now again they wanted to switch over but
they were fearful of this hostile Administration again gendler Biden and Warren so what did they do well they did what you're supposed do in America which is they started to have a legislative movement and they submitted a bill to get sab1 121 recced so the SEC wouldn't have this hanging over their head and they got it through last year through the Senate the Senate approved it they got it through the house the house approved it to repeal it then it got all the way to Biden's desk and he vetoed it so the will of the
American people the banks the Senate the house all said get rid of this bulletin you shouldn't have that power and the president President Biden vetoed it or whoever had his stamp at the time we don't know so basically what happened you can see here Biden vetos the resolution to overturn it this was last year with Biden's angry face like I said probably wasn't him so what happened then well the American people voted and they got Biden out and they put Trump in Trump came in he gave this speech at the Bitcoin conference in Nashville last
year I got a speak on the main stage about two hours before Trump showed up I tried to stay backstage to see him when he showed up but they wouldn't let me but I got to watch this stage this this presentation from the front of the stage and he basically said fire Gary gendler on day one he said we've seen all the persecution that's happened to the Bitcoin and cryptocurrency space by the SEC and we're going to get rid of it we're going to fire him so the American people spoke as it's supposed to be
done and Trump came in now this is where things get interesting and not just interesting but very powerful so here comes the bank so what happened is Trump has so far kept his word he's done a lot of things he said he was going to do like for example close the borders he freed Ross on day one and he got rid of Gary guinsler at the head of the SEC so he stepped down and immediately sab1 121 was recced the very thing that was holding the banks back the financial system back the very thing that
they tried to get rid of that Biden wouldn't let go of it's over so the bank so that's been rescinded and now the banks are coming with adoption you can see breaking SEC officially resends Sab 121 which prevented Banks from custody Bitcoin so if the banks can custody Bitcoin that means now they could hold it on behalf of their customers they could sell it to their customers they could sell it and hold it they could do all types of financial products lending products hedging products all types of financial products which of course is what they
want to do now if the banks do this this brings adoption why well for a couple of reasons number one it makes it accessible to Millions not Millions hundreds of millions of people people already have bank accounts if I can just click a button and add Bitcoin in my bank account it makes it very easy very accessible number two it adds legitimacy and Trust I mean I don't know about this magic internet money I don't know about this exchange I mean I got to set up this account and I somehow have to send them money
seems kind of sketchy but if my money is already in my bank who I trust well as Fargo Chase Bank of America and I can click a button to add Bitcoin it adds legitimacy and Trust I trust the bank to hold my money I can trust the bank to hold my Bitcoin it also then as I said allows the banks to introduce all types of new products they want to do this let me show you exactly what they're saying uh we just saw the world economic Forum was being held in Davos and of course all
the world leaders including the banksters were all there at Davos David Solomon the CEO of Goldman Sachs one of the largest most prestigious most influential Financial firms in the world said at the moment from a regulatory perspective we can't own Bitcoin this was a few weeks ago previous to this being rescinded he said but but if the world changes which it just did we can have a discussion about it so he's saying look we'd love to get into it but we can't but if it changes we're all about it that's what he's saying okay that's
Goldman Sachs what else we got well we have right here Morgan Stanley CEO Ted pck said well be working with Treasury and The Regulators to figure out how keyword how how we can offer crypto services in a safe way well they don't have to anymore because it's been rescinded and they're ready to come in hard and heavy now speaking of hard and heavy we have here a message from Bank of America CEO Brian moan he said if the rules come in and make it a real thing you can actually do business with which it just
did you'll find that the banking system system will come in hard quote come in hard what does hard mean well I have some numbers for you he says they're going to come in hard so Goldman Sachs Morgan Stanley Bank of America some of the biggest banks in the world are coming in hard but what does hard really mean well here we have black rock not arguably the biggest Financial firm in the world I think 11 and a half trillion dollars in assets Black Rock it's not their money it's not 11 half trillion with their money
it's your money it's your pension your retirement fund they manage it on your behalf Black Rock is now telling everybody that they manage money for that they recommend Bitcoin portfolio waiting of up to 2% up to 2% the largest financial firm in the world who manages more money for more people than anybody else is saying that everyone should have about a 2% waiting to bitcoin that's what hard looks like now what would the 2% waiting mean well the head of Black Rock Larry Fink just happened to tell us he said that I was with a
sovereign wealth fund during this week in Davos and there was a conversation should we have a 2% allocation or should we have a 5% not should we have one or not but it's how big should it be 2% or should it be 5% and he said that if everybody adopted that conversation when he says everybody what he's talking about is if all the big funds not every single person on the world world but all the big funds if if everybody if the funds would do that if they'd have that conversation we'd see Bitcoin up to
$700,000 per Bitcoin so that's $700,000 potentially a future value and you can buy it for $100,000 today seems like a pretty good deal I think Larry Fink is bullish but maybe he's still not bullish enough all right let's keep going now the reason why he may not be bullish enough is because you have to understand this isn't just that sab1 121 was resented which it was what this is is it's really a signal it's a shift it's a fundamental transformation it's a regime shift we got the entire whatever you want to call it Obama Biden
Administration that regime is out and we have a new regime in that's completely different how different well gendler Gary gendler Elizabeth Warren the anti- crypto Army they're out and instead taking guinsler place is Hester Pierce now Hester Pierce has been with the for a long time she has been one of the only people at the SEC that's been friendly to crypto she's been this voice of reason if you will trying to speak on behalf of the people so much in in fact that Hester Pierce has been labeled crypto mom now guinsler is out and guess
who took his place none other than crypto mom Hester Pierce as a matter of fact we also have David saaks a well-known crypto Advocate who has now become Trump's crypto zar so we have a huge crypto Advocate as the cryptos are we have crypto mom taking over the SEC and we have Trump who came in and used an executive order to get rid of operation chokepoint and operation chokepoint was this uh SEC basically regulation well not regulation but they were attacking Banks and other financial institutions sort of unconstitutionally L and that is gone you can
see here this article from Bloomberg says the SEC launches crypto task Force led by crypto mom Hester Pierce so they're going to develop a clear framework for crypto and they're going to do it the right way they're going to coordinate with Congress as well as well as other agencies so not like what the SEC did before which was this inrun around Congress they're going to work directly with Congress this is a big deal this is a regime shift on top of that as I said Trump did some executive orders executive order Sidelines the fed and
it Sidelines the FDIC like get out of the way we're doing this right we're doing this this is the end of operation choke point 2.0 no longer will they do these unconstitutional moves if cryptocurrency and Bitcoin is legal in the United States as an American you should have the right to do this now if you're not in the United States what does this mean to you well the US is a pretty big influential country and most likely this will trickle down to your country as well but regardless this is going to bring the boat up
for everybody in the world and again this is not just about Banks holding Bitcoin as a custody this is an entire regime shift do you understand what I'm talking about now if you've been watching my videos for any time then you know that this fits perfectly into the 50-year quantum wave framework that I've been talking about for a long time where in this 50e cycle there's four distinct phases now as I've shown many times phase one right here is where retail comes in this is where the big bang happens all the retail comes in the
developers come in the Nerds that like to play with technology come in phase two which is where we're at right here is the largest part of the cycle it's what we call the Surge and this represents what I call the institutional phase or the frenzy phase so for those of you who are watching this thinking it's too late I should have bought Bitcoin when it was 10 cents or a th000 or 10,000 know that right now is still early we still have the biggest part of the move right here in front of us and so
what's interesting is this 50-year framework that's happened now this is the sixth time in 300 years we happen to have the news of the regime change the Trump Administration that fits in perfectly with this entire framework now you can see we can also overlay something that we use in technology to measure adoption called an scurve and we can also see that the time it takes to go from 0 to 10% adoption is the same time it takes to go from 10% to full adoption which is generally 8 0 or 90% And you can see this
is a parabolic run that we have in front of us and again this shift fits in perfectly with that now we can see this is a little bit of an older chart these are slides from a video I gave over in Abu Dhabi about a month ago called Abu Dhabi is the capital of capital some of the richest people in the world were there and we saw then that institutions were coming for Bitcoin as a matter of fact at that time over 60 publicly traded institutions were already holding Bitcoin on their balance sheet today it's
almost 100 in in like a month it's almost doubled that's how quickly this is coming if you want to watch the full video from this uh we'll link it down below you can watch this whole video see all these slides it's uh pretty compelling if I do say myself we'll link to that down below and if you'd like to know how we invest through this what types of assets we to be buying during this part of the cycle I'm having a free live event where I'll go through a number of charts and you can see
exactly what history tells us about this it's free if you want to come hang out we'll do live Q&A I'll put a link to that down below as well but this is a big deal now let's think about this for from a few different ways and uh get ready for impact so on a shortterm basis we want to be thinking about this being more about sentiment so we're going from like this aggressive stance where we are basically trying to penalize it and shut it down to now legitimizing it right we have an Administration that's now
very prob bicin so this starts to change the mental sentiment now don't be don't be alarmed if we see the volatility in front of us this doesn't mean that the of Bitcoin is going to double overnight but we'll start to see this sentiment shift as more people coming in now this just allowed the banks to clear the way it takes time for them to build products and launch products so be patient but over the long term we're talking about potentially hundreds of billions of dollars of capital coming in now let's put this into perspective we
got Bitcoin ETFs about a year ago we've had less than a hundred billion dollar of capital come in to the ETFs but yet the price of Bitcoin the market cap has gone up by more than a trillion dollars so 100 billion equals a trillion dollar in market cap what happens if a few hundred billion come in you can do the math that's more long term which again fits perfectly into this thesis but some people are afraid that there's risks some people are afraid that if the banks come in this leads to manipulation if they own
all the Bitcoin what if they start to suppress the price like they' done with gold and things like that well what I would say is think about this from a different perspective think about this from a gain Theory or maybe a psychological standpoint if the banks are itching to get in because they want to make a bunch of money from you if the they want to have more ETFs well the only reason you're going to buy the ETFs or buy the Bitcoin is if the price goes up if they starting to manipulate it to put
push the price down you wouldn't be buying it what would be the point of that and so I would just have you think about that I think the risk of manipulation is very low all right now what do we want to do we want to be watching this as it develops a couple things one we want to watch the big Banks the JP Morgans the city Banks the Bank of America I already told you what they're saying they're coming but we want to watch for this right we also want to watch the SEC because this
isn't done yet this is only the beginning at this point at the time I'm recording this we're only not even a week into this new regime this new this new Administration they're not done yet they are going to completely open this up the United States is going to be become the capital of Bitcoin and digital assets right here in America but it's going to also take Global liquidity so as I said just because this is happening doesn't mean the price is going to double overnight the main driver in the driver seat is global liquidity if
you want me to do a whole video on that leave me a note in the comments down below Global Equity is the driver for all assets specifically risk assets that are sensitive like Bitcoins we want to definitely watch that but I do want to leave you with a thought and that is that we are at the doorstep right now this is a moment in time remember this the doorstep of the single biggest migration of capital all the money is in the old Legacy system and it's all migrating over to the new system an adoption into
the digital asset space and no one has seen something this big ever happen before and we are lucky enough to be alive watching it right now all right let me know what you think let me a comment down below are you expecting this to be as big as I am let me know in the comments down below all right and uh other than that that's what I got to your success I'm out
