As you’re probably aware, the regulatory landscape here in the United States is moving quickly. That move is already reviving banks’ appetite to broaden their cryptocurrency activities. Innovation in the crypto industry has continued post-2022 crash. This can be attributed, in part, to recent regulatory changes that have created a more welcoming environment for financial institutions.
Several factors have contributed to this shift. The Trump administration's decision to dissolve the National Cryptocurrency Enforcement Team (NCET) within the Department of Justice, coupled with the SEC's move to drop its lawsuit against Coinbase, has fostered a sense of regulatory calm. This sudden stability has caused banks to change their tune on the matter of engaging with the crypto space.
Most recently, London-headquartered Standard Chartered has considered moving its crypto subsidiary operations over to the US market. The same goes for Germany-based Deutsche Bank, which has been taking steps to expand its US crypto operations. These actions point to an important trend. Traditional banks and other established financial institutions are just as enthused to capitalize on this seismic shift in the US regulatory landscape.
This change in regulatory sentiment is due in no small part to Donald Trump’s return to the presidency. Within the first three months of his second term, he hit the ground running with a number of policy shifts and executive orders. These moves sent shockwaves through the cryptocurrency industry.
"Three months in: Trump's impact on finance and crypto" - The Paypers
This new regulatory environment couldn’t be further from the previous, overreaching and strict regulations. One company, which gained its license in 2021 after thorough regulatory proceedings, incurred millions of dollars in costs to meet the requirements.
"Crypto Knocks on the Door of a Banking World That Shut It Out" - The Wall Street Journal
This present regulatory calm is giving banks the chance to explore new opportunities found in the US crypto market. With this change, the financial industry has definitely begun a new chapter in how it views digital assets.
