On May 15, the Financial Times reported that the Trump administration plans to significantly relax the Supplementary Leverage Ratio (SLR) regulations, marking the largest capital unbinding since the 2008 financial crisis. The SLR originally required large banks to hold high-quality capital to address total leverage risk and was considered an important measure to prevent systemic risks, but has long been questioned for limiting the ability to hold low-risk assets such as US Treasury bonds. The new policy, which could be announced as early as before summer, may exclude US Treasury bonds and central bank deposits from SLR calculations, potentially releasing up to $2 trillion of balance sheet space, encouraging banks to return to the Treasury bond market and enhance liquidity. The US Treasury Secretary and Federal Reserve Chairman have both expressed support, viewing it as a key focus of banking reform. Although some experts are concerned about relaxing capital regulations during market volatility, analysts believe this move could help lower US Treasury bond yields, release liquidity, and indirectly support the Bitcoin and crypto asset markets.
Bitunix analyst recommendations:
The new capital regulations may release massive liquidity, enhance bank participation in US Treasury bonds and markets, and benefit fund reallocation to risk assets. If the policy is successfully implemented, it will further consolidate the medium-term bullish trend for Bitcoin. In the short term, focus on the BTC $100K support; if maintained, it can preserve the bullish structure, and breaking through $105K will attract more funds to chase prices. Recommended to pay attention to fund-benefiting sectors such as Layer 1 public chains and high-market-cap tokens.
