TradFi coalition urges Trump to overhaul restrictive Biden-era crypto policies
Leading financial industry groups have urged President Donald Trumps administration to roll back federal policies they say have restricted US banks from engaging in digital asset markets and warned that regulatory overreach is hampering American leadership in financial innovation.
In a letter sent to David Sacks, Special Advisor for Artificial Intelligence and Crypto and chair of the Presidents Working Group on Digital Asset Markets, the groups called for the immediate rescission or revision of policies imposed by federal banking agencies under the previous administration.
According to the letter:
These policies have made it exceedingly difficult for banks to engage in digital asset-related activities, despite their clear legal authority to do so.
They also pressed the White House to include key regulators the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) in the working groups efforts to reshape the U.S. digital asset framework.
US banks sidelined
The letter, signed by the Bank Policy Institute, American Bankers Association, Securities Industry and Financial Markets Association, and other financial organizations, argued that restrictive policies have left US banks lagging behind international competitors in the digital asset sector.
The banking organizations singled out several regulatory actions issued under the Biden administration, including:
- Federal Reserves SR 22-6 policy on crypto-asset engagement
- OCCs Interpretive Letter 1179 restricting crypto custody
- FDICs FIL-16-2022 notification requirement for crypto activities
- Joint agency statements warning against crypto-asset risks
The letter stated:
The United States will not be able to achieve a leadership position in digital assets and financial technology under the status quo.
The banking groups said the first step in advancing that goal is rolling back Biden-era restrictions, which they argued have created uncertainty and discouraged US financial institutions from participating in the sector.
The organizations signaled their intent to provide detailed regulatory and legislative proposals to help US banks regain competitiveness in the global digital asset economy. They also requested a meeting with Sacks and the working group to discuss the next steps.
Inclusion in Crypto Task Force
The groups also urged Sacks to expand the Presidents Working Group to include banking regulators, citing their influence over financial markets. The FDIC, OCC, and Federal Reserve were not included in the current task force despite their oversight of banks seeking to engage with digital assets.
The letter pointed to FDIC Acting Chairman Travis Hills recent remarks, in which he acknowledged that the agencys approach to crypto had led to a perception that the FDIC was closed for business regarding blockchain and digital asset-related activities.
Beyond banking regulators, the groups suggested that the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC) both divisions of the Treasury Department should also be included in digital asset discussions, given their role in regulating financial crime and sanctions compliance.
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Text source: CryptoSlate
