TD Cowen: It is expected that the Trump administration will relax rules on banks using cryptocurrencies, but caution still needs to be maintained

jinse reports that investment bank TD Cowen suggests the Trump administration may bring positive changes for crypto entities cooperating with banks, but expectations for this new regulatory environment should be "within a reasonable range". The TD Cowen Washington research group (led by Jaret Seiberg) wrote in a report that banks have a responsibility to comply with anti-money laundering (AML) and Bank Secrecy Act (BSA) rules, and manage risks such as liquidity and concentration.

Analysts said: "Even if Trump's regulators are no longer so worried about the increasing connection between traditional finance and cryptocurrencies, this will cause some banks to remain cautious. That's why some banks may still think the risk is too high while other banks will seize the opportunity. In addition, some cryptocurrency entities may refuse any government oversight which could limit the comfort level of banks working with them." Nevertheless, Jaret Seiberg stated that under Trump's leadership, the link between traditional finance and cryptocurrencies would be "inevitable".