The finance of the old school and the crypto crypto world are similar while President Donald Trump encourages a more favorable regulation of digital assets while participating financially in their growing popularity.
The latest example of this confluence came last week when the president of President Trump Media & Technology Group (DJT) announced his intention to develop in financial services by launching a company called Truth.fi.
Trump Media will allocate up to $ 250 million in truth. The company which kept custody of these funds will be one of the best known financial giants in America: Charles Schwab (SCHW).
The company logo for Charles Schwab is displayed in a location in New York. Reuters / Brendan McDermid / Photo file ·Reuters / Reuters
Some other big names of Wall Street could soon seek to have cryptographic assets for their customers due to a change put in place by the Trump administration during his first week in power.
The Securities and Exchange Commission has decided to eliminate an accounting game known as the staff accounting bulletin 121 (SAB 121) which called for financial institutions to hold the crypto in their balance sheet as responsibility.
The old advice made too expensive for most regulated banks to offer cryptography guard. He also called for increased public disclosure of non-banking financial companies such as Coinbase Global (Coin), a major cryptocurrency exchange.
“Goodbye, goodbye Sab 121! It’s not fun,” said the commissioner of the dry hester peirce in an X job celebrate change.
Kevin Frommer, CEO of the Bank Advocacy Group Financial Services Forum, qualified the change of rule of the dry “one step in the right direction”.
Thought in the circles of cryptography is that this one step is part of a directional change which will ultimately encourage more banking giants to deal with digital assets. Such a change would lead to a wider acceptance of the industry.
Let more American financial institutions have digital assets will lead to “a greater level of integration of the crypto in traditional financial channels,” said Jeffrey Neuburger, leader of the Blockchain group of the proskauer law firm.
In addition, “Crypto is likely to become a more common investment asset such as titles, gold or other precious metals,” added Neuburger.
Banks are still expecting new guidelines on cryptographic assets of the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC) and the Currency Controller Office (OCC).
Current regulations advice Of these agencies – published weeks after a crypto crisis in 2022 which followed the collapse of the exchanges of FTX cryptocurrency – warns the banks on the risk of engaging in cryptographic activities or even to provide ‘Banking service industry.
The Trump administration has not yet appointed new heads for the FDIC and the Occ, and the Federal Reserve must also appoint a new high -level banking regulator following the decision of Michael Barr to resign as a defect -supervision president by the end of February.
The president of the American federal reserve Jerome Powell. Reuters / Kevin Lamarque ·Reuters / Reuters
The president of the Fed, Jerome Powell, was questioned last week on cryptocurrencies, said: “We are not against innovation and we certainly do not want to take measures that would bring banks to terminate customers which are perfectly legal. “
But he also warned that “if you have the choice to conduct this activity within a bank, which is inside the federal security net with deposit insurance, you want to be almost sure that It is a safe and solid activity. “
Trump clearly indicated that he wanted his administration to support the expansion of the cryptography industry. One of the first movements was to assemble a working group on digital assets within the executive branch led by artificial intelligence and the Tsar Crypto David Sacks.
Its objective is to “support the growth and use responsible for digital assets, blockchain technology and related technologies in all sectors of the economy”.
The SEC also formed a “crypto working group” to help the American regulator “to draw clear regulatory lines, to provide realistic paths to registration, to craftsmanship sensible disclosure frameworks and to deploy the resources of ‘Application judiciously. “
The president also participates in the cryptocurrency industry. Just before its inauguration, Trump’s team launched an official even room for the 47th president (Trump) with one for First Lady Melania Trump (Melania) on the Solana blockchain (ground).
There are many more American banks could do with crypto as long as their Washington supervisors allow it.
These options could range from the supply of Crypto customers or the stock-up funds on the issue of stable stables for payments, to the exchange of crypto for customers and even to manage deposits on blockchain platforms.
“I am not sure that each bank is dying to have cryptographic assets,” Yahoo Finance Ian Katz told Yahoo Finance, analyst of the Alpha Partners financial regulations. But lenders “prefer to trust their own risk management and their own decision -making while it is decided by regulators”.
The bosses of some of the largest banks certainly give more consideration about it.
“For us, the equation really consists of knowing whether we, as a highly regulated financial institution, can act as transacters,” said the CEO of Morgan Stanley (MS), Ted Pick World Economic Forum in Davos, Switzerland.
“We will work with Treasury and the other regulators to understand how we can offer this in a safe way,” added Pick.
The CEO of Bank of America (Bac), Brian Moynihan, told CNBC at the same event as “if the rules arrive and do something with it with which you can really do business, you will find that the banking system will be hard On the hard side of it.
Phil Green, CEO of Cullen / Frost Bankers (CFR), told Yahoo Finance that “it was logical for me that the banking industry would have a role in detention. I think that makes sense for us to consider. But it’s really more about what customers want. “”
“If President Trump pleads for that and you see more things happening, without a doubt, it will be more in mind with people, so I expect that we should improve our game,” added Green.
David Hollerith is a main Yahoo Finance journalist covering the bank, crypto and other areas in finance.
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