U.S. Banking Regulations for Crypto Expected to Change Under Trump
The upcoming inauguration of President-elect Donald Trump could lead to significant changes in crypto regulation, particularly concerning banking policies. Key points include:
- Trump may issue executive orders impacting the crypto industry, but actual regulatory changes will occur at agencies like the SEC and FDIC.
- Former Commissioner Paul Atkins is expected to be nominated to lead the SEC, with possible acting chair Mark Uyeda favoring the withdrawal of Staff Accounting Bulletin No. 121, which mandates banks treat customers' crypto assets as their own.
- Commissioner Hester Peirce has also opposed SAB 121, indicating potential for its repeal under new leadership.
- The FDIC's interim Vice Chairman Travis Hill is likely to propose clarifications allowing banks to engage in crypto activities while setting strict deadlines for regulatory approval.
- Current FDIC Chairman Martin Gruenberg will leave before the inauguration, paving the way for new pro-crypto policies.
- Changes at the OCC and Federal Reserve could further ease banking constraints on crypto firms, with key personnel departures creating opportunities for more favorable regulations.
If enacted, these shifts could alleviate banking restrictions on cryptocurrencies, facilitating greater institutional involvement.