President Donald Trump has initiated a series of measures suggesting regulatory relaxation in the digital asset sector, effectively revising the entire US cryptocurrency policy. Following the deregulation of several financial regulations since March, the market is growing its expectations for risk mitigation as the primary enforcement agency, the Securities and Exchange Commission (SEC), continues to withdraw lawsuits.
The first measure canceled immediately after Trump's inauguration was the SEC's accounting guidelines that increased banks' burden of digital asset holdings. Subsequently, the Office of the Comptroller of the Currency (OCC) abolished regulations requiring separate approvals for bank operations related to cryptocurrency custody services and stablecoin reserve management. Similarly, the Federal Deposit Insurance Corporation (FDIC) removed the 'cryptocurrency-related risk reporting' regulation implemented during the Biden administration, significantly increasing banks' accessibility to the cryptocurrency domain.
Travis Hill, Acting Director of the FDIC, clearly stated the policy change's intent, saying, "Banks should not be prevented from participating in digital assets solely due to reputational risk." While market expectations are not high in terms of deregulation speed or scope, the series of movements initiated by President Trump are interpreted as the first step towards substantial institutional relaxation in the US cryptocurrency industry.
The SEC's actions are particularly noteworthy. Recently, significant lawsuits involving Ripple (XRP), Coinbase (COIN), and Kraken have been concluded without legal guilt determinations. Some cases have seen substantial portions of fines canceled or returned through settlements, being read as a favorable signal for the cryptocurrency industry. Experts assess that this suggests the SEC may no longer consider most digital asset-related activities as securities law violations.
Early in the Trump administration, the SEC had been reserving legal judgments or withdrawing lawsuits regarding digital asset issuance, staking, and mining activities. While investigations related to some major platforms like TRON-based projects and Binance remain on hold, SEC sanctions are retreating unless involving major issues like fraud or market manipulation. The SEC has recently officially announced that 'meme coins', 'proof-of-work mining', and 'US dollar-pegged stablecoins' are not subject to securities laws.
The situation is rapidly changing with the Department of Justice's (DOJ) transformation. The DOJ recently announced the official dissolution of its cryptocurrency crime investigation team, interpreted as a measure following President Trump's deregulation trend.
With the imminent appointment of Paul Atkins as SEC Chairman, the US digital asset policy is likely to move in an even more radical direction. Atkins, who has historically supported free-market-centered regulation, is expected by the industry to fundamentally redesign cryptocurrency policy upon his appointment.
While there are criticisms that Trump's initial measures might be mere short-term political performance, the industry generally assesses that withdrawing existing regulations and lawsuits could serve as a preliminary stage for regulatory drafting. Particularly, with the effective abolishment of 'Operation Chokepoint 2.0', which was controversial during the Biden administration, the market is clearly perceiving the message of a 'digital asset-friendly regime change'.
The industry is now focusing on how the regulatory relaxation will bring positive changes to the actual market environment. If an environment for cooperation between banks and cryptocurrency companies is recreated, Trump's decision could become a medium to long-term growth momentum beyond regulatory normalization.
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