The cryptography industry can probably hope for two other agencies that align with its objectives of policy on digital assets: the office of the Currency Controller, which is one of the main American bank regulators, and the Protection Bureau financial consumers, where the lights are actually closed.
We can expect the risk relationship of the sector with the American bank to be even more attenuated with the arrival of a new head of household in the OC, Rodney Hood, the former president of Credit-Union Credit- Union Watchdog. As with other key financial monitoring positions, President Donald Trump has exploited someone who embraces cryptocurrency technology.
When you run the Syndicale Crédit in 2021, he said: “Cryptocurrency must be part of the credit cooperative system. If you don’t have it, it will harm your ability to compete with D ‘Other financial services providers. “The substitution of banks for credit cooperatives could mean a rethinking of the Occ to the banks in 2021 which contributed to the flaw between cryptographic companies and American banking services.
The main push of the directives in 2021 of the OC, Federal Deposit Insurance Corp. And the federal reserve was that the banks should not embark on the crypto sector without obtaining an official panel from their regulators that products or services could be managed without risking risking the institution. But the industry argued that the resistance of agencies has gone even further than that and completely distant the banks from digital assets.
Trump’s new actor’s actor of the FDIC, Travis Hill, already said that he had ordered “a complete examination of all supervision communications with banks that were looking to offer products or services related to crypto” In order to open a path for banks to engage with digital with active digital.
With the withdrawal of the cryptocptal policy of the Securities and Exchange Commission which has effectively accumulated additional capital requirements on banks that wanted to manage crypto for customers, bank obstacles for digital assets could deteriorate.
Read more: American banking problem of crypto probably among the first things addressed under Trump
At the Consumer Financial Protection Bureau, the guard dog established after the global financial collapse in 2008, sees its existence even during the factory routes of the Republicans who have long had problems with the agency’s fights with the companies. Trump has set up his head of the budget, Russ Vought, as an actor chief of the CFPB, and he moved to stifle his funding and paralyze his operations.
Joy has mounted certain crypto figures, including Brian Armstrong, CEO of Coinbase. His business was a frequent subject of consumer complaints connected to the agency’s database – nearly 8,000 to count. Armstrong declared in an article on the social media site X that the agency “should be deleted”, calling it an “unconstitutional activist organization which has made enormous damage to the country”. (Although the United States Supreme Court ruled last year that the CFPB operation does not withdraw the Constitution.)
In addition to what previous leaders considered its duty to protect consumers injured by cryptographic companies, the agency was also looking for additional political authority on industry. In January, its previous director now dissected pressure for a stable settlement that the industry estimated to be an excessive excess that also threatened self-heberled portfolios. But it is unlikely that the proposal is moving further now that the agency’s activity has been frozen in the Trump administration.
The attack on the CFPB of the Administration aroused the resistance of the Democratic legislators, in particular the senator Elizabeth Warren, the best democrat of the senatorial banking committee, and the representative Maxine Waters, who occupies this same role in the Committee of Financial Services of the Chamber .
“Elon Musk and the guy who wrote Project 2025, Russ Vought, is trying to kill the consumer financial protection office,” said Warren in a video published on Monday, criticizing Trump’s administration for his prosecution of the agency consumption. “It is the gain in the rich who invested in his campaign and who want to deceive families – and not have anyone around to stop them.”
Democrats intend to hold a rally at the CFPB later Monday afternoon.
Also on Monday, Waters published the text of the Stablecoin bill that she had worked with her former republican counterpart of the committee, former president Patrick Mchenry. This more bipartite compromise effort, however, is not what is currently offered Republicans. However, if the two chambers end up looking for a bipartite agreement on the stablecoins which can comfortably adopt the gathering in the Senate, it may have to respond to the concern of the Democrats to give the States a high level of supervisory authority on stablecoin transmitters .
