Donald Trump’s re-election may improve relations between banks and cryptocurrency firms. TD Cowen foresees potential regulatory changes.
Bank Caution in Risk Management
Jaret Seiberg from TD Cowen's Washington Research Group noted that despite reduced concerns from Trump regulators, banks still need to consider regulations like anti-money laundering and the Bank Secrecy Act. While some banks might avoid crypto risks, others could embrace the opportunity.
Anticipating New Regulations for Stablecoins and Crypto Trading
The report noted that allowing banks to issue stablecoins would ease reserve auditing and cash asset management. Some banks might also trade cryptocurrencies similar to stocks, pending Congress's new regulations.
Prospects for Improved Collaboration
While major crypto firms have long complained about regulator actions, recent documents revealed banks were not barred from crypto activities. Trump’s administration is expected to foster better relations, possibly issuing an executive order on the topic.
There is growing anticipation for more favorable U.S. policies toward cryptocurrencies, fueled by Trump's statements against prohibiting crypto firms from the financial system.
