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US Treasury Secretary Scott Payett indicated that the comprehensive reform of the national team for a long time for the supplementary leverage rate of banks (SLR) is an imminent-a political axis that can be hesitant through Bitcoin-which is that TV interviews benefit “the successful people on the verge of transition” on the base and that the control can be harmonized by the rich episodes through “Touatin from points”.
Bitcoin missiles
Although the proposal still should remove the federal reserve, the currency observer and FDIC office, the travel trend is clear: exemption, or partial exemption, will allow US Treasury bonds from SLR from large banks to recycle the turbine of the turbine to new government debt purchases.
SLR, which was presented after the 2008-2009 crisis, forces even risk-free assets such as treasury bonds to withstand capital fees; Systematic World Bank must finance five cents of shares for each dollar of total assets, including the Central Bank reserves. The BESSENT plan will raise this burden on sovereign bonds, a step that the industry has pressured since the end of the epidemic in March 2021. Kevin Frum, CEO of the Financial Services Forum, is called the current stack based on leverage, contributing to the leverage, contributing, and economy. “
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While officials put this step as a portable calibration, the total liquidity motivation is great. Commentator on the market Forecan Yildirim Recount The 103,000 subscribers in the United States collectively carry about $ 5 trillion in the treasury; The elimination of the five-cent capital haircut would free approximately $ 250 billion of first-class capital-at times that reaches the current monthly amount of the Federal Reserve of $ 5 billion. “This is the injection of liquidity by organizational stroke,” he says, adding that the move “reduces revenues without federal reserve printing money,” a mix that historically pushes investors to more risk curve.
The market is already trading on this expectation. Standard revenues decreased for ten years to less than 3.95 percent after Bessin’s comments, and after President Trump postponed a 50 percent tariff for goods in the European Union until July 9. Yildirim argues that “every decrease in the base point in the ten years is mainly a marketing campaign for Bitcoin,” because “liquidity does not disappear-it is only looking for a new home.” And he confirms that the Treasury Ministry’s readiness to change the capitalist banking rules, instead of relying on the central bank, “tells you how politicians trapped feel the inability and service of debt and political optics.”
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Not everyone is convinced that changing the base will work in an intended manner. Critics, like Peter Bokarar from Blackley Consultant, noticed that bank appetite for duration risks has not been fully recovered since the regional bank failure for 2023; If merchants fail to absorb the additional cabinet supplies, the Federal Reserve can be forced to return to the market. The Banking Policy Institute, while welcoming SLR RELIEF, argues that it must be associated with the broader rethinking of post -crisis convergences such as additional GSIB and the stress test system to open the ability of the Entrepreneur on a permanent basis.
However, Bitcoin responds reflective to the liquidity standards in dollars. The lower cabinet returns reduce the attractiveness of market funds that drive to the north by five percent, which led to the release of the capital that has been suspended in monetary equivalent vehicles since 2022. Data on the series highlighted by buyers at Yildirim Show Over-Curnt (OTC) sliding to 115,000 BTC, evidence that senior buyers wear wrestling Directly joint; When this inventory is exhausted, the offices should be stored from public stock exchanges, which is a dynamic tightening and exaggerating historically the movements of the upward trend.
Ultimately, the SLR re -postponement process does not make an occurrence for the American financial account, but it removes a strangulation point in the paper near the term and reduces the cost of the alternative opportunity to hold unrestricted assets. In the words of Yildirim, “canceling the restrictions that settle sovereign financing while pushing investors to the assets of risk, by virtue of its definition, almost, is the back wind of Bitcoin.” In this sense, changing the base works like facilitating quantitative shade, and reaching a moment when the Federal Reserve is contracted through sticky inflation and political restrictions – one of the structural stimuli of bitcoin.
At the time of the press, BTC was traded at $ 108,790.
Distinctive image created with Dall.e, Chart from TradingView.com
