Investment bank TD Cowen stated that the Trump administration may bring positive changes for cryptocurrency entities working with banks, but expectations for this new regulatory environment should be "within reason."
TD Cowen's Washington research team, led by Jaret Seiberg, wrote in a report that banks are responsible for complying with Anti-Money Laundering (AML) and Bank Secrecy Act (BSA) rules, and managing risks such as liquidity and concentration. The analysts stated, "Even if Trump's regulators are no longer as concerned about the increasing connections between traditional finance and cryptocurrencies, it will lead some banks to remain cautious, which is why some banks may still consider the risks too great, while others may seize the opportunities. Additionally, some cryptocurrency entities may refuse any government oversight. This could limit banks' comfort in working with them."
Nevertheless, Jaret Seiberg stated that under Trump's administration, the connection between traditional finance and cryptocurrencies will be "inevitable."