US Treasury Secretary Scott Bessent signals impending deregulation impacting Bitcoin markets by exempting or partially exempting US Treasuries from the supplementary leverage ratio (SLR).
The proposed adjustment aims to allow large banks to invest in government debt by lifting the capital burden on sovereign bonds.
If the rule change is implemented, US banks could free up approximately $250 billion in tier-one capital, significantly impacting liquidity and potentially lowering Treasury yields.
Bitcoin market reacts reflexively to reduced Treasury yields, with potential impacts on money-market funds and OTC desk inventories, indicating a shift towards risk assets.