Following the inauguration of the President in the United States, the crypto industry is moving in anticipation of the removal of regulatory hurdles. Significant changes are expected in crypto policies, especially with the new leaders of institutions such as the SEC and FDIC.
SEC’s New Leadership and SAB 121
The appointment of Paul Atkins, who has emerged as the new chairman of the SEC, could bring changes to how crypto assets will be handled by banks. If SAB 121 is canceled, it is expected to provide flexibility in the activities of major banks in the crypto space.
Under the leadership of FDIC interim chairman Travis Hill, banks are likely to take a more liberal approach to crypto activities. Hill argues that crypto-related activities should be easier to conduct without requiring regulatory approval.
Other Regulatory Bodies and Possible Changes
Leadership changes are also expected at other regulatory agencies, such as the OCC. These changes are expected to pave the way for more widespread use of crypto assets in the financial system.
“A better approach would be for organizations to clearly state what types of activities they can legally engage in and ensure they can carry them out safely.” –Travis Hill.
These changes are expected to contribute to reducing regulatory pressure on the crypto industry and pave the way for innovative solutions. However, it is not clear whether the new leaders of the regulatory institutions will take steps in this direction. The latest report by Reuters supports this, however. According to the report, Trump will issue supportive decrees regarding cryptocurrencies as soon as he takes office.
The crypto industry could operate in a more stable environment following these possible regulations. This can increase investor confidence and support growth in the sector.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
