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Trump team explores changes to banking regulators

Trump team explores changes to banking regulators

GrafaGrafa2024/12/13 05:40
By:Mahathir Bayena

Donald Trump’s transition team is reportedly examining the possibility of restructuring, merging, or even eliminating certain U.S. banking regulators, according to a Wall Street Journal report. 

Advisers to the president-elect have discussed potential changes with candidates for key regulatory positions, including the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC). 

These discussions included whether the FDIC could be abolished or merged into the Treasury Department, along with other potential overhauls of federal financial oversight bodies. 

The authority to make such changes would ultimately rest with Congress, particularly given the complexity of dissolving or significantly restructuring these agencies. 

Outgoing FDIC Chair Martin Gruenberg, accused by Representative Tom Emmer of being the “architect of Operation Chokepoint 2.0,” announced his plans to retire on January 19, paving the way for Trump to appoint a successor. 

“Operation Chokepoint 2.0” is a term used to describe an alleged strategy by the Biden administration to cut off banking access to the crypto industry. 

Elon Musk, co-leading the Department of Government Efficiency (DOGE) alongside Vivek Ramaswamy, has also voiced support for regulatory streamlining. 

Musk recently argued on his X platform that the U.S. has "too many duplicative regulatory agencies" and suggested eliminating the Consumer Financial Protection Bureau (CFPB). 

The Journal’s report coincides with a federal judge’s order requiring the FDIC to revise its redactions of “pause letters” sent to financial institutions. 

These letters reportedly asked 23 banks to halt or refrain from expanding crypto-related services. 

Judge Ana Reyes instructed the FDIC to submit more detailed redactions by January 3, emphasizing the need for transparency. 

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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