Part 7/13:
A noteworthy legislative development involves Congress passing a bill permitting banks to custody Bitcoin and use it as collateral. While not immediately impactful, this legalization aligns with the buy, borrow, and die strategy—where wealthy individuals borrow against their assets without selling, thus avoiding capital gains taxes.
However, recent moves to clamp down on assets used as collateral—such as bans on certain collateral types—pose threats that could constrain this strategy, potentially impacting Bitcoin’s leverage and upper price projections.