Another two US regulatory authorities have been given a new layer of magic colored color, with changes at The office for the foreign exchange office (OCC) and Consumer Agency for Economic Protection (CFPB) to get both agencies in line with Trump 2.0 Pro-Digital Asset Agenda.
On February 7, CFPB, an American consumer guard dog established after the global financial crash in 2008, received the dubious honor to welcome Donald Trump’s budget manager Russell Vought as acting head in a trait that apparently is intended to hamstring Its funding and operations.
A few days later, OCC, a federal agency that regulates and monitors national banks and federal savings associations, Saw the arrival of the new acting Chief Rodney Hood, the digital currency-friendly former chairman of the US credit union controller.
Both movements are in line with a number of recent meetings that appear to benefit more careful monitoring of the digital asset space, with the new head of OCC able to call back –supposedly—Strict Digital Asset Banking Policy while –potentially soon-end—CFPB has faced criticism from some digital asset sectors for being an “activist organization” that harms the industry.
Trump 2.0 – Forms the regulatory space
President Trump Started introducing its agenda to the federal authorities almost as soon as the final election bill was made last year.
On December 4, he announced his election to the new head of Securities and Exchange Commission (Sec), Paul Atkins; On January 20, he continued his transformation of regulatory leadership with Appointment of Travis Hill as Federal Deposit Insurance Corporation (FDIC) acting manager; and a week later, the president confirmed Scott Betting as secretary of state.
A shared trait that makes these appointments significantly trumped the Trumpian elections is that they are all known for pro-digital assets.
Atkins, which takes over from the unfair malignant Gary GensesHilled by Trump as someone who “has worked with and studied the digital asset industry” and “acknowledges that digital assets and other innovations are crucial”; Hill started his reign by announcing FDIC “would” provide a path for institutions to participate in crypto and blockchain-related activities “; And the bass told The Fox business in July last year that he had “been excited about the president’s embrace of crypto” and that “crypto is about freedom, and the crypto economy is here to stay.”
Now two more potential regulatory obstacles for Trump’s crypto-ELDOrado appear to have been softened: OCC and CFPB.
Occ
2021, OCC Published a letter Confirm that national banks and federal savings associations must show that they have sufficient checks in place before participating in certain digital currency, distributed general ledger and Stablecoin activities.
Similar advice came from FDIC, an independent agency aimed at maintaining stability and public confidence in the financial system and FederalUS central bank system.
This led to complaints that supervisory authorities and legislators tried to stifle the industry through unanimous banks from engaging in digital assets.
Enter Hood, the new digital asset-friendly stand-in manager for OCC, who, as former chairman of the US Credit Union Watchdog 2021, mentioned:
“I think the Cryptocurrency market is something very important not only for credit associations but the overall market for financial services.”
He claimed that “If you don’t have it, it will harm your ability to compete with other financial services suppliers.”
If Hood brings the same energy for bank monitoring, it is likely that too long, OCC’s 2021 guidance on increased control over digital asset activities will be updated to a more Laissez-Faire strategy.
Meanwhile, in a hearing on February 5 about “Examines the real effects of debanal in America“Trump’s new actor for FDIC, Hill, mentioned He has already ordered “an extensive review of all supervisory communication with banks trying to offer crypto-related products or services”, in order to open a further route for banks to get involved in digital assets.
CFPB
When it comes to CFPB, rather than appointing another digital currency converted to the best job, it seems that Trump has taken a more Hacksaw strategy and decided to simply end the organization.
Republicans and a certain set of digital assets have long had problems with CFPB’s struggle with companies on behalf of consumers. Brian ArmstrongCEO of Coinbase (Nasdaq: Coins) – the subject of almost 8000 consumer complaints logged in to the agency’s database – said in a Post on X. That the agency is to be deleted “, calls it a constitutional” activist organization that has done enormous harm to the country. “
On top of its mandate to protect consumers, CFPB’s previous leadership sought additional political authority Over the industry – of course to set up the wind of those in the industry who already do not like to handle the agency.
Therefore, Trump’s installation of his budget manager Vought was because the agency’s acting manager a reason for the celebration for those who hoped to see the Republican former head of Office of Management and Budget Draw the Purse Strings at CFPB’s operational financing.
But not everyone was as happy with the appointment as Coinbase. Democratic legislators, including Senator Elizabeth Warren, the best Democrat in the Senate Bank Committee, and Representative Maxine Waters, ranked member of House Financial Services Committee, expressed their concerns.
“Elon Musk and the guy who wrote project 2025, Russ Vought, trying to kill the consumer’s financial protection agency,” Warren said In a video released on Monday. “This is the profit to the rich guys who invested in their campaign and who want to cheat families – and have no one to stop them.”
Sec Falling In Line
As if this was not enough with a sea change in favor of the digital asset space, SEC’s interim company manager, Mark Uyeda—Semoning wants to prove himself as aboard with Trump’s agenda that will soon be permanent boss atkins-rendend removed The agency’s highly maligated personnel accounting balls 121 (SAB 121).
SAB 121 each Published In March 2022, as a political guideline, which describes how virtual asset service providers (VASP) must manage accounting for digital assets and set additional capital requirements on banks that want to handle digital assets for customers.
The controversial bulletin contained strict guidelines for institutions that wanted custody’s digital assets, which included, among other things, that VASPs must register a responsibility and a corresponding asset for their balance sheets at fair value for users’ digital assets in their custody. In other words, VASPs had to maintain their users’ digital asset holdings on their own balance sheets.
SAB 121 each Gossipy by Digital Currency Advocate Industry figures, supervisory authorities and legislators for further deterrent adoption of digital access of traditional financial institutions and an attempt to remove the bulletin was eventually disused of Biden back in June last year.
After appointed Stand-in SEC chairman on January 21, Uyeda, which once called the regulator’s attitude to the digital asset space for a “disaster for the entire industry”, wasted, no time, and a new personnel accounting balltin, SAB 122, was published On January 23, the former guidance revoked.
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