TD Cowen expects the Trump administration to relax rules for banks dealing with cryptocurrencies. However, some banks will remain cautious due to concerns about compliance and risk.
According to investment bank TD Cowen, Donald Trump's administration is likely to bring positive changes for #cryptocurrency companies working with banks, but the new regulatory environment Expectations should be reasonable,
Banks are responsible for complying with anti-money laundering (AML) and Bank Secrecy Act (BSA) regulations, as well as managing risks such as liquidity and concentration, according to a memo released Monday by TD Cowen, a Washington-based research group led by Janet Seiberg. The memo. Therefore, "some banks will be cautious even if regulators in the Trump administration are not as concerned about the expanding links between traditional finance and #cryptocurrencies , Seiberg said. "So some banks may decide the risk is too great, while others will jump at the opportunity. In addition, some cryptocurrency organizations may prefer to stay out of government oversight. This may limit the ability of banks to cooperate with cryptocurrency organizations.
According to Seiberg, the connection between traditional finance and cryptocurrencies will inevitably strengthen under the Trump administration. With the growth of the cryptocurrency market and the time since the cryptocurrency fiasco of 2022 and the collapse of Silvergate Bank, banks will eventually become more active with cryptocurrencies, Seiberg believes.
Banks will issue stablecoins.
Banks may be authorized to do so. This will help ensure proper management and auditing of reserves and keep cash in the banking system, Seiberg said.
In addition, some banks will be able to trade crypto assets the same way they trade stocks, especially if Congress passes new laws on cryptocurrency market structure, Seiberg believes.
the documents released
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