The US banking industry remains largely unchanged despite President Trump’s perceived pro-crypto stance, with regulatory enforcement easing but institutional barriers persisting. According to Custodia Bank CEO Caitlin Long, the administration has yet to make meaningful progress in addressing crypto debanking issues.
Long spoke at ETHDenver, highlighting that federal banking agencies have not reversed their anti-crypto guidance, despite initial optimism surrounding Trump’s policies. The lack of change has sparked concerns within the industry, with questions lingering about whether policy shifts will materialize.
The need for urgent reforms within US financial institutions, particularly the Federal Deposit Insurance Corporation (FDIC), is emphasized by Long. She argues that under Martin Gruenberg’s 15-year tenure, the agency resisted adapting to technological advancements, leading to the banking system remaining “backwards” in this regard.
Following Gruenberg’s departure, Acting Chair Travis Hill now leads the FDIC, but concerns over past regulatory actions remain. Long advocates for the swift passage of stablecoin legislation and stresses the importance of strong consumer protections, particularly ensuring banks maintain adequate cash reserves.
The current state of affairs is starkly illustrated by Long’s comment: “The average bank in the United States right now holds 8 cents in cash against every $1 of demand deposits… That’s fundamentally unstable and fundamentally susceptible to a bank run.”
Source: https://ambcrypto.com/trumps-pro-crypto-stance-in-question-as-banking-barriers-remain