The Wall Street Journal reported today that Trump's transition team and the Department of Government Efficiency (DOGE) led by Musk are exploring ways to significantly reduce, merge, or even eliminate top Wall Street banking regulatory agencies, with affected entities potentially including the Federal Deposit Insurance Corporation (FDIC), and a comprehensive relaxation of financial regulations is expected. (Background: Bloomberg reported that Trump will nominate a16z's crypto policy director to succeed the CFTC chair; who is Brian Quintenz?) (Additional background: Trump appointed David Sacks as the first 'AI and cryptocurrency czar'; will the venture capitalist fully loosen regulations?) The Wall Street Journal today (13th) cited informed sources revealing that Trump's transition team is exploring ways to significantly reduce, merge, or even eliminate top Wall Street banking regulatory agencies, with affected entities potentially including the Federal Deposit Insurance Corporation (FDIC). Informed sources stated that Trump's advisors and the Department of Government Efficiency (DOGE) led by Musk recently interviewed potential nominees to lead banking regulatory agencies such as the FDIC and the Office of the Comptroller of the Currency (OCC), inquiring whether Trump could abolish the FDIC or merge the Federal Deposit Insurance into the Treasury Department. Last month, Musk also called for the removal of the Consumer Financial Protection Bureau (CFPB), which has long been criticized by Republicans. Informed sources pointed out that Trump's advisors and potential nominees also discussed plans to merge or otherwise restructure the FDIC, OCC, and parts of the Federal Reserve. Additionally, one informed source indicated that in another plan by the transition team, the FDIC, OCC, and parts of the Federal Reserve would not be merged, but only one of the agencies would continue to regulate banks, while the other agencies would only retain non-regulatory personnel. In the case of the CFPB, consumer education efforts may replace regulatory functions. Trump's desire to abolish the FDIC has led to divergent views in the banking industry. The WSJ pointed out that any proposal to eliminate the FDIC or other banking regulatory agencies would require action from Congress. Although past presidents have reorganized and renamed government departments, Washington has never closed a major cabinet-level agency and rarely closed top agencies like the FDIC. Especially since the FDIC's deposit insurance is considered almost sacred in the U.S., any threats or actions that could undermine the perception of deposit insurance could rapidly affect banks, shake the stability of the U.S. financial system, and exacerbate customer panic during banking crises. However, some bank executives are optimistically believing that Trump's streamlining of banking regulatory agencies will relax a series of regulations concerning capital retention buffers and consumer protection, as well as reviews related to industry consolidation. But some banking professionals prefer to retain contact with multiple regulatory agencies as it allows them to balance between different regulators. Former Republican FDIC chair Sheila Bair stated in an interview that proposals to directly eliminate banking regulatory agencies would struggle to gain support from Congress and the banking industry. "Banks may complain, but ultimately, they want their own regulatory agency and to establish connections with it. They like the status quo." It is worth noting that last Friday, Coinbase's Chief Legal Officer Paul Grewal publicly disclosed legal documents revealing that the FDIC had sent letters to multiple U.S. banks over 20 times in 2022, discouraging them from providing financial services to the cryptocurrency industry. Now that the FDIC has become a target for reduction or even elimination by the Trump administration, it may significantly remove regulatory barriers between the cryptocurrency world and U.S. banks, as well as interactions with the fiat world. A crypto spring in the U.S. is expected to arrive, as the current administration's "Stifling Point Action 2.0" against cryptocurrencies ended in failure. Extended reading: Coinbase exposes the U.S. government's "crypto stifling action": lobbying multiple banks to stay away from crypto in 2022.. Related reports: Trump: No plans to replace Fed Chair Powell, over 85% chance of another Fed rate cut in December. Trump officially nominates Paul Atkins as new SEC chair; what is his stance on cryptocurrency? Bitcoin hits $99,000. Trump administration reportedly will let the "CFTC dominate cryptocurrency regulation" weakening the SEC, with the crypto grandfather becoming a popular candidate for cryptocurrency czar. Crypto think tank warns: despite Trump's victory, these three U.S. policies may still scare off virtual currency investors. "The Wall Street Journal: Trump considers significant cuts or elimination of banking regulatory agencies, comprehensive relaxation of crypto regulation expected?" This article was first published on BlockTempo (BlockTempo - the most influential blockchain news media).