Investment bank TD Cowen: The Trump administration may take a lenient stance on banks using cryptocurrency

ChainCatcher news, investment bank TD Cowen stated that the Trump administration could bring positive changes for crypto entities working with banks, but expectations for this new regulatory environment should be "within a reasonable range." The TD Cowen Washington research team, 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 to manage risks such as liquidity and concentration.

Analysts stated, "Even if Trump's regulators are less concerned about the increasing connections between traditional finance and cryptocurrencies, this could lead some banks to remain cautious, which is why some banks may still view the risks as too great while others seize the opportunity. Additionally, some crypto entities may refuse any government oversight. This could limit banks' comfort in working with them." Nevertheless, Jaret Seiberg indicated that under the Trump administration, the connection between traditional finance and cryptocurrencies will be "inevitable."