While Donald Trump continues to appoint cryptocurrency supporters to critical positions, including SEC chairman, after his election as US president, he is also making new moves.
Finally, Donald Trump's transition team is looking for ways to significantly downsize, merge or eliminate key bank regulators.
Trump's team and officials from the newly formed Office of Government Efficiency (DOGE) are exploring merging or eliminating agencies such as the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) as part of the upcoming major banking reform, the Wall Street Journal reported.
Trump's team reportedly asked candidates being considered for the FDIC and OCC whether deposit insurance could be included in the Treasury Department.
Although Trump's team has sought to eliminate some agencies, it has been noted that a proposal to eliminate the FDIC or any agency would require Congressional approval.
While some experts support his planned moves against institutions like the FDIC, others argue that FDIC-backed deposit insurance is important for financial stability and warn that removing such institutions could hurt the overall banking sector.
On the other hand, the crypto industry applauds Trump’s proposal to eliminate the FDIC and thus his efforts to reduce restrictive banking policies. “Eliminating the FDIC would bring us one step closer to ending the weaponization of the U.S. banking system and preventing Operation Choke Point from ever happening again,” said Tyler Winklevoss, co-founder of Gemini exchange.
*This is not investment advice.
