While I'm so surprised by this move is that the bank is a profit making institution, and anything that will add an extra dollar to their books they'll go for it. I think the US government will give the banks green light to be the custodian of Bitcoin, because by so doing they can easily monitor and tax users holding Bitcoin. I don't see this having much of an impact on bitcoin generally as it'll be just a little fraction of persons that will buy the idea of having their Bitcoin in a bank, most persons will still stick to self custody or exchange (which I do not approve).
In the United States, cryptocurrency legislation has long been formed and US citizens are required to file declarations about their cryptocurrencies and transactions.
If I were a trader and decided to keep my bitcoins in a bank, I would rather buy a spot bitcoin ETF to reduce over-declaration issues.
