President Donald Trump encourages more advantageous regulations on digital assets, and is financially participating in their popularity, and the world of old school finances and encryption emerging is approaching.
The latest example of this junction is when the President’s same name, Trump Media & Technology Group (DJT), announced plans to expand to financial services by launching a company called Truth.Fi.
Trump media assigns up to $ 250 million Truth.fi cash to cryptocurrencies and other investments. The company that has the right to custody of these funds will be Charleschwab (SCHW), one of the most famous financial companies in the United States.
The logo of Charles Schwab’s company is on display at New York City. Reuters/Brendan McDder Mid/File Photo ・Reuters /Reuters
Wall Street’s other big names may, as a result of a change made by Trump’s administration in the first week of Trump’s inauguration, may immediately retain encrypted assets for clients.
The Securities and Exchange Commission has decided to eliminate accounting guidance known as staff accounting bulletin 121 (SAB 121).
With old guidance, it was too expensive for most regulated banks to provide encrypted protection. It is also required to increase public disclosure from non -banks other than banks such as Coinbase Global (Coin), a major cryptocurrency exchange.
“Goodbye, goodbye SAB 121! It wasn’t interesting,” said SEC member Hester Perth, who celebrated this change.
Bank Advocacy Group Financial Services CEO Kevin Fromer called the SEC rule change “one step in the right direction.”
The concept in Crypto Surcles is that this one step is a part of a change in the direction that many bank giants encourage digital assets. Such a shift accepts the industry more widely.
Jeffrey Neburger, the head of the blockchain group of professional scauer’s professional scaler, says, “If you can hold digital assets in more US financial institutions,” the integration level of encryption on the mainstream financial channels will increase. “
“Crypto is likely to be more common investment assets such as securities, gold, or other precious metals,” said Neuburger.
The story will continue
Banks are still waiting for new guidance on encryption assets from the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and Currency Secretary (OCC).
Current regulatory guidance from these institutions -A few weeks after the 2022 cryptographic meltdown following the collapse of the cryptocurrency exchange FTX, it will be involved in encryption activities and provide bank services to the industry. We have also warned banks about risks.
The Trump administration has not yet nominated the new head of FDIC and OCC, and the federal preparation system will be a new top banking regulation authorities following Michael Bar’s decision to resign as a deputy chairman by the end of February. Must be named.
Jerome Powell, Chairman of the US Federal Reserve. Reuters/Kevin Ramarc ・Reuters /Reuters
FED chairman Jerome Powell said last week last week, “We hope that we are not opposed to innovation and will take action to complete legal customers with banks. “Sen.”
However, he also warns that “if you have chosen to carry out your activities in a bank in the federal safety net, you are convinced that it is a safe and healthy activity.” did.
Trump has revealed that his administration wants to support the expansion of the cryptographic industry. One of the first movements was to assemble a digital asset working group in the executive department led by artificial intelligence and Crypto Czar David Sacks.
The goal is to “support digital assets, blockchain technology, and relevant technologies in responsible growth and use in all sectors of the economy.”
SEC also supports the US regulatory authorities, “Painting a clear regulatory line, providing realistic paths for registration, creating a wise disclosure framework, and wisely the execution resources. “Task Force” was formed.
The President is also participating in the cryptocurrency industry. Immediately before taking office, Trump’s team launched an official Maem Coin for the 47th President (Trump), and launched one of the first Lady Melania Trump (Melania) in the Solana (Sol) blockchain. Ta.
As long as Washington’s coach has permitted it, more US banks may be able to encrypt it.
These options can be expanded to customers with encrypted or associated exchange funds, so that it can be issued stubcoin for payment, encrypted clients, and managing deposits on the blockchain platform. I have sex.
“I don’t know if all the banks are wanting to hold encrypted assets,” said Ian Katz, a Capital Alpha Partners’ financing analyst, Ian Katz. However, the lender says, “It will be determined by regulatory authorities, trusting their risk management and their decisions.”
Some of the biggest bank bosses certainly take more into topics.
“For us, this equation is actually there, regardless of whether it can work as a transcector as a highly regulated financial institution,” said CNBC at the World Economic Forum in Switzerland. I talked to.
“We will cooperate with the Ministry of Finance and other regulatory authorities to understand how to provide it in a safe way.”
Bank of America (BAC) CEO Brian Moynihan at the same event on CNBC, “If it is true that the rules can enter and actually do business, you can see that the banking system will be intense. Transaction side.
“CULLEN/Frost Bankers (CFR) CFR), the highest executive officer, says to Yahoo Finance: I think it makes sense for us to consider it. But that’s what the client really wants. “
“If President Trump defends it and see more things, it will definitely be more of a person with people, so we will play our games. I hope I have to upload it, “said the green.
David Hollerith is a senior in Yahoo Finance, which covers banks, cipher, and other fields of finance.
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