Following the earlier lack of involvement by banks in crypto due to the Biden administration’s restrictive policies, banks may soon be able to tap into cryptocurrency services under President Donald Trump. Trump’s government, which is pro-crypto, is expected to ease regulations, enabling banks to offer services like crypto asset custody and tokenized deposits without pre-approval. This marks a significant shift from Biden’s administration’s stance which actively discouraged banking ties with crypto due to concerns over illicit activities and financial stability. Trump’s FDIC intends to revise guidelines, making it easier for banks to engage in these activities. Major banks such as Bank of America, JPMorgan Chase, and Goldman Sachs are already making moves toward incorporating blockchain and crypto-related services. If regulations evolve favorably, it could normalize crypto deposits among larger banks, potentially reducing panic-induced runs like those triggered by the 2022 crash affecting crypto-focused banks like Silvergate Bank. The banking industry aims to leverage blockchain technology to reduce costs and enhance transactional processes amidst the evolving crypto regulatory landscape.
