TD Cowen: Trump's crypto business may hinder U.S. regulatory legislation, political risks are rising
ChainCatcher news, according to The Block, investment bank TD Cowen pointed out that the Trump family's cryptocurrency business (including the planned launch of a stablecoin) could trigger a backlash and delay the U.S. regulatory process. Despite lawmakers accelerating the push for cryptocurrency regulations, political risks are on the rise.
Jaret Seiberg, head of TD Cowen's Washington research team, wrote in a report on Monday: "We are concerned that political threats may escalate to a level that could undermine legislative and regulatory reforms in the cryptocurrency space. While we do not currently see political risks that could completely disrupt the cryptocurrency industry, the risks are rising rather than falling, which is a key factor we believe investors need to pay attention to." Currently, Washington lawmakers and regulators are making progress in cryptocurrency legislation and guideline development. The U.S. Securities and Exchange Commission (SEC) has withdrawn several cryptocurrency lawsuits, and lawmakers are proposing frameworks for regulating stablecoins and market structures.
Seiberg mentioned that last week, SEC Acting Chair Mark Uyeda also hinted that the SEC might provide exemptions for cryptocurrency trading platforms and traditional exchanges wishing to trade tokenized securities. However, Seiberg stated that this momentum could be threatened by the controversies arising from the Trump family's involvement in the cryptocurrency space, including their planned launch of a stablecoin. "We are increasingly concerned that the Trump family's business activities and their government actions could provoke a strong backlash, derailing positive government actions." Seiberg also pointed out concerns over the Trump administration's shift in anti-money laundering policies, such as lifting sanctions on the cryptocurrency mixer Tornado Cash and the Justice Department's reduction in prosecutions of cryptocurrency money laundering cases.
