TechFlow news, January 8 — Investment bank TD Cowen said the Trump administration could bring positive changes for crypto entities collaborating with banks, though expectations for this new regulatory environment should remain "within reasonable bounds." The TD Cowen Washington Research Group, led by Jaret Seiberg, wrote in a report that banks are responsible for complying with anti-money laundering (AML) and Bank Secrecy Act (BSA) rules, and for managing risks such as liquidity and concentration.
Analysts stated, "Even if Trump-era regulators become less concerned about increased linkages between traditional finance and cryptocurrency, this would still lead some banks to remain cautious—this is why some banks may still view the risks as too high, while others will seize the opportunity. Additionally, some crypto entities might reject any form of government oversight, which could limit banks’ comfort level in partnering with them." Nonetheless, Jaret Seiberg said that under the Trump administration, the connection between traditional finance and cryptocurrency would be "inevitable."
