Kelly Kellam, the director of Bitlab Academy, stated that the reversal of SAB 121 would make banks lend to bitcoin, just like real estate.
“If the change of SAB 121 is overturned (…), the bank can lend it to it,” he said. “So, instead of selling pressure in the market when you need to use your capital (…), you can actually make a loan, as the price is highly valued.”
Speaking with the host Rob Nelson in a round table, Keram believes that it will help you access the Bitcoin holder without selling or paying the capital gain tax.
On January 24, the US Securities and Exchange Commission (SEC) canceled the staff accounting bulletin 121 (SAB 121). This is a rule that forced banks to handle bitcoin and other cryptocurrencies as debt to the balance sheet.
Role of bitcoin in finance
Keram claims that Bitcoin is not a speculative asset, but a core financial product that should be considered lower than conventional investment.
Keram opposed the concept that bitcoin is a dangerous asset. Instead, he sees everything except Bitcoin as part of his risk portfolio.
“I will actually push one of the things you said,” Kerum told Nelson. “You have said that your risk portfolio has a tremendous amount of Bitcoin. I am as close as possible to understand that my risk portfolio is something other than Bitcoin. I’m working hard.
Bitcoin support loan
Kerum claims that the ability to borrow for bitcoin can change the way people use it for assets. Instead of selling bitcoin and paying capital gain tax, the holder can take a loan against the BTC holding and use it as a collateral with the benefits of rising prices.
Rob Nelson acknowledges this issue and says, “It’s like owning a house, but it can’t be used as value. It’s very contracted.”