Investment bank TD Cowen indicated that the Trump administration may bring positive changes for crypto entities working with banks, but expectations for this new regulatory environment should be 'within reasonable bounds'.
TD Cowen Washington Research Group (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 analyst stated, 'Even if Trump’s regulators are no longer as concerned about the increasing link between traditional finance and cryptocurrencies, this will lead some banks to remain cautious, which is why some banks may still consider the risks too great while others will seize the opportunities. Additionally, some cryptocurrency entities may refuse any government oversight. This could limit banks' comfort in partnering with them.'
Nevertheless, Jaret Seiberg stated that under Trump's leadership, the connection between traditional finance and cryptocurrencies will be 'inevitable'.