According to a report by TD Cowen’s Washington Research Group, the istration under Donald Trump is expected to ease restrictions on banks dealing with cryptocurrency firms. The policy shift could create stronger ties between traditional financial institutions and the growing digital asset sector. However, they warned that regulatory compliance and risk management concerns may cause some banks to remain hesitant.
TD Cowen: Trump likely to ease crypto-banking rules
TD Cowen predicts the Trump istration will ease restrictions on banks working with crypto. However, compliance and risk concerns may keep some banks cautious. Closer ties between crypto and traditional finance are…
— CoinNess Global (@CoinnessGL) January 7, 2025
TD Cowen Says, Banks Will Grow Against Crypto-related Risks
TD Cowen’s lead analyst Jaret Seiberg stated that while Trump’s istration may reduce regulatory scrutiny, banks must still adhere to anti-money laundering (AML) and Bank Secrecy Act (BSA) rules,
“some banks to be cautious even if Trump’s regulators flag fewer concerns about increased ties between traditional financial and crypto,” Seiberg stated in a report. “It is why some banks may still decide the risk is too great while others will embrace the opportunity. In addition, some crypto entities may balk at any government oversight. That could limit how comfortable banks are at working with them.”
Seiberg also noted that over time, the financial sector will likely grow more comfortable with crypto-related risks. The growth of stablecoins, digital currencies backed by reserves, may become an area where traditional banks can engage more directly.
Seiberg suggested that allowing banks to issue and manage stablecoins could ensure greater financial oversight while keeping cash reserves within the banking system. The crypto community remains optimistic about Trump’s return to the presidency.
In particular, industry players have expressed hope that his istration will prevent further debanking of crypto firms. Top companies, including Coinbase, have criticized U.S. regulators for restricting crypto access to traditional financial services.
