Trump’s Presidency Sparks Debate Over Crypto Regulations in the U.S. – BitRss

As Donald Trump embarks on his presidential campaign, expectations regarding changes in the regulatory environment for cryptocurrencies in the United States are intensifying. Some officials, however, assert that current policies continue to be upheld. Caitlin Long, CEO of Custodia Bank, emphasized that federal banking agencies have not yet reversed their negative stance toward cryptocurrency assets.

Regulatory Interventions

Following the Biden administration’s swift regulations implemented in response to the FTX ($0.00) incident, no significant shift in the existing regulatory attitude has been observed. Under the Pause Letters issued to banks under FDIC supervision, a halt to cryptocurrency transactions was requested. Additionally, the U.S. Federal Reserve rejected Custodia Bank’s main account application citing risks associated with cryptocurrency assets.

Financial Assurance and Regulatory Expectations

Long pointed out that banks need to maintain sufficient cash reserves for consumer protection and system security. She noted that existing practices are incompatible with cryptocurrency assets, potentially leading to instability within the banking sector.

Caitlin Long: “The fact that U.S. banks hold only 8 cents in cash for every dollar deposited is causing instability.&rd…